BJ’s raising membership fee — first increase in seven years
Come the new year, consumers will have to pay a bit more to become a member of BJ’s Wholesale Club.
The warehouse club retailer said that, effective Jan.1, 2025, the annual fee for a basic Club membership will increase by $5 to $60 a year and the Club+ membership fee will increase by $10 to $120. It’s the first time BJ’s has raised its memberfee since 2018.
In deciding to raise its membership fee, BJ’s joins rival Costco, which raised its annual membership fee by $5., effective Sept.1, 2024. It marked Costco’s first membership fee increase since 2017.
“Since the last membership fee increase, the company has transformed its business with a relentless focus on delivering value to members,” BJ’s stated in a release. “Today’s announcement allows the company to invest in an even stronger value proposition for its 7.5 million member base, which continues to grow.”
BJ’s is also adding a new benefit for new and existing Club+ members, including BJ’s One+ Mastercard cardholders. The members will receive two free same-day deliveries on eligible orders of $50 or more during each annual membership period. The new benefit will go into effect on Jan.1, 2025.
THIRD QUARTER
Bj’s announced the membership fee increase in its third-quarter earnings release. The company’s net income totaled $155.7 million, or $1.17 a share, for the period ended Nov.2, up from $130.5 million, or $0.97 a share, in the year-ago period. Adjusted earnings came to $1.18 a share, beating analysts’ estimates of $0.93 a share.
Total revenue grew to $5.1 billion from $4.9 billion.
Comparable club sales rose 1.5%. Excluding gasoline sales, comparable-club sales increased 3.8%. Digitally enabled comparable sales growth was 30.0%, reflecting two-year stacked comp growth of 47.0%
During the quarter, BJ’s membership fee income increased by 8.4% year-over-year to $115.0 million.
“Our value proposition continues to resonate in new and existing markets,” said Bob Eddy, chairman and CEO, BJ's.. “I want to thank our team members for their commitment to our purpose of ‘taking care of the families who depend on us’. We are excited about our future."
BJ’s expects adjusted earnings between $0.78 and $0.88 a share for the fourth quarter, and $3.90 to $4.00 for the full year. The company’s previous guidance for full-year adjusted EPS was toward the low end of a $3.75 to $4.00 range.
“As we look ahead, we remain confident in our ability to drive long-term growth and shareholder value led by our continued focus on our strategic priorities,” said Laura Felice, executive VP, CFO, BJ's.
Bj’s currently operates 247 clubs and 182 BJ's Gas locations in 20 states.
