A steady stream of shoppers looking for deals on necessities has helped wholesale club operators Costco Wholesale Corp. and BJ's Wholesale Club Inc. deliver profit gains while many of their grocery competitors struggle.
Costco and its smaller competitor, BJ's, both reported Wednesday that traffic, profit and sales trends improved at their stores during the quarter. . . more
Costco and other warehouse clubs have done relatively well in an economy that has been particularly brutal to retailers. Overall retail sales were down about 8 percent for the first 11 months of 2009, but sales at warehouse and superstores were up 2 percent, according to the U.S. Census' monthly retail trade report.
Developers broke ground Thursday on a new 85,000-square-foot BJ’s Wholesale Club in Quincy, Mass. The new warehouse store is being constructed on 7.5 acres, where a former Patriot Ledger printing press operated. The new BJ’s is slated to open in the spring of 2010.. . . more
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BJ's Wholesale Club, during a Q2 earnings call, looked to the future of a smaller, more accessible real estate market. Although the club company's profit was down year-over-year, it was only a slight dip from $36.5 million in net income at the end of Q208 to $35.1 million this year.
President and COO of BJ's, Laura Sen, explained that the wholesale club was planning a few smaller-sized stores with a footprint of around 85,000 square feet. The notion, Sen said, was to find a model that worked for a middle-sized market more efficiently than a larger club. The smaller-box offers BJ's some flexibility in space, as well as an ability to push into a dense market, which they could not entertain with their full-box. "Certainly, we have the flexibility to run clubs like this and we know that they can produce some very attractive ROIs, so we are going to be able to slip into some marketplaces that we know competition could not go and within our current geography," Sen said. . . . more
* Q2 EPS 64 cents vs Wall St view 62 cents
* Q2 sales fall 5.2 pct
* Raises full-year profit outlook
Despite a retail industry in which few chains are thinking about opening new stores, local real estate sources say BJ’s Wholesale Club is scouting for locations in the Pittsburgh area.
Natick, Mass.-based BJ’s is a big-box buyers club that operates a business model similar to that of Costco and Sam’s Club. Its sales are growing as customers gravitate to clubs in search of discounts.. . . more
BROOKLYN, NY-BJ’s Wholesale Club has signed a lease to anchor Canarsie Plaza, a mixed-use redevelopment planned by a joint venture of Acadia Realty Trust and PA Associates at 8925 Ave. D in Brooklyn. The wholesale club will take the 170,000-square-foot space formerly taken by Home Depot, which last year canceled its pre-leases there and at Pelham Manor--another upcoming Acadia/PA mixed-use in Westchester County. Terms of the BJ’s lease were not disclosed, and Acadia SVP Jon Grisham did not return GlobeSt.com’s calls by deadline.
"While many retailers may be struggling at this time, BJ’s is well-positioned to outperform its peers during this difficult phase of the economic cycle," says PA principal Paul Slayton in a release. "Along with our site in Pelham Manor, we are pleased to add them to another of our urban/infill redevelopment projects. The addition of BJ’s to Canarsie Plaza will add significant value to the center. We anticipate construction of the project to commence shortly." Published reports say the 250,000-square-foot Canarsie Plaza will cost about $65 million to build. . . . more
Costco and BJ's Turn Healthy Profits as Other Retailers Feel the Pain
Costco (NASDAQ: COST) knows how to get their customer to spend money and come back for more. The spending trends are particularly revealing when compared to competitor, BJ's Wholesale (NYSE: BJS).
People visit Costco more. On average, customers visited Costco 2.8 times/month from January to October this year. BJ's Wholesale customers averaged 2.1/month during the same period. This data according to the new Main Street Spending Index (MSSI) compiled by Geezeo, a personal finance website that helps consumers track their spending. . . . more
NATICK, MA–Despite tight credit that could affect its partners, BJ's Wholesale Club will increase its growth next year, opening six to eight new stores in existing markets, executives said during the company’s third quarter conference call. Three units will open in the fourth quarter, for a total of four for this year.
But next year will see nearly double that growth, despite financing problems, company officials said. “We may be cautious with our share repurchase to make sure we can fund chain expansion as needed,” said Laura Sen, president. Net sales for the third quarter of 2008 were approximately $2.4 billion, an increase of 13.4% over the third quarter of 2007. Aided by high gas prices during the quarter, the company reported net income of $28.2 million, compared to net income of $22.7 million. Comparable store sales excluding gas rose 6.6%, with a total comp increase of 11.9%. BJ's currently operates 177 clubs in 15 states.
Source: GlobeSt.
While other retailers struggle, consumers hit the wholesale club to stock up on necessities
NATICK, Mass. (AP) - BJ's Wholesale Club Inc. said Wednesday its September same-store sales rose 10.4 percent, boosted by higher demand for both merchandise and gasoline.
NEW YORK (MarketWatch) -- Thanks to value-seeking shoppers, Costco Wholesale Corp., the largest U.S. wholesale club, said Wednesday that quarterly profit jumped 31%, boosted by international demand and U.S. sales of gasoline. Smaller rival BJ's Wholesale Club Inc. said that profit exceeded its previous projection.
