BJ Wholesale (BJ) ‘s digital transformation effort pays off – June 28, 2021


BJ’s Wholesale Club Holdings, Inc. (BJ Free Report) spares no effort to improve high-end performance and expand customer base, whether through better prices, private label offers, merchandise initiatives or digital solutions. These efforts have contributed to the growth of registrations and renewals of members.

Digitization, a key catalyst

BJ’s wholesale club has spared no effort to strengthen omnichannel operations and increase delivery services. The company has dedicated resources to expanding digital capabilities to better interact with members and provide a convenient way for members to shop, including same day delivery, curbside pickup and online shopping. line, club pickup (BOPIC). Management estimates that digitally engaged members have higher average baskets and take more trips per year than members who buy only from the club.

The company has built a strong digital portfolio with Bjs.com, BerkleyJensen.com, Wellsleyfarms.com, delivery.bjs.com and the BJ mobile app. This allows members to purchase, review products, and digitally add coupons to their membership card. Notably, the company launched curbside pickup and expanded the BOPIC service for fresh and frozen groceries at all of its locations.

We note that digital sales grew 31% in the first quarter of fiscal 2021. On a two-year cumulative basis, the metric climbed 381% and generated nearly 7 percentage points of comparable sales of merchandise, excluding gasoline sales. On a stacked basis, the company has seen strong growth across all of its digital channels, particularly BOPIC, curbside pickup and same day delivery. A significant part of digital growth is provided by clubs.

Image source: Zacks Investment Research

Improve the shopping experience

BJ’s Wholesale remains on track with its plan to allow members to use EBT payments, when shopping on BJs.com for in-club pickup and curbside pickup. Notably, company members in Florida and North Carolina can use their EBT card for SNAP qualified items at checkout, when shopping at BJs.com for club pickup or contactless pickup. at the edge of the street. The service also allows members to check their card balance as well as use several payment options.

The company is committed to providing consumers with greater flexibility and convenience when shopping online. As part of previous efforts to strengthen digital offerings, BJ’s Wholesale has added several new features to its app, including easier search and scan features, personalized product recommendations, and seamless navigation to discover deals and some products.

Additionally, BJ’s Wholesale has entered into an exclusive three-year agreement with CommerceHub, a leading e-commerce platform that enables order fulfillment and online delivery solutions. The company’s partnership with Citizens Pay to provide customers with enhanced online financing solutions for large purchases is also encouraging.

Impressively, shares of this company Zacks Rank # 3 (Hold) have climbed 26.3% in the past six months compared to the industry growth of 5.4%.

3 actions to consider

Target (TGT Free Report) has a long-term earnings growth rate of 13.3%. He currently has a Zacks Rank # 1 (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Burlington Stores (BURL Free Report) has a profit surprise for the last four quarters of 74.7%, on average. The stock sports a Zacks Rank # 1.

Costco (COST Free Report) has a long-term profit growth rate of 9.1%. He currently wears a Zacks Rank # 2 (Buy).

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