BJ’s Wholesale, one of the top three warehouse clubs in the U.S., continues to see cautious consumer behavior in its stores. With heightened competition from Costco, Walmart’s Sam’s Club and other rivals making it harder to attract shoppers, BJ’s is doubling down on an aggressive strategy to boost sales and give it an edge.
In the fourth quarter of 2025, BJ’s saw its comparable club sales (excluding gas sales) increase by 2.6% year over year, while its operating income decreased by 0.2%, according to its latest earnings report.
Its sales performance during the quarter lagged behind top rivals Costco and Sam’s Club. Excluding gas sales, Costco’s U.S. comparable sales rose by 5.9% year over year, while Sam’s Club’s spiked by 4% during that time period.
BJ’s CEO on where shoppers are cutting back
During an earnings call on March 5, BJ’s Wholesale CEO Bob Eddy said that the company “navigated a dynamic environment marked by a more cautious, value-seeking consumer, tariff-related and geopolitical uncertainties, and broader macroeconomic volatility” throughout 2025.
“Value remains foundational to how we serve our members, and we continue to see that resonate across all income levels, particularly in a period where many consumers are becoming more selective with their spending,” said Eddy.
While sales in grocery, perishables, consumer electronics and apparel increased during the fourth quarter, BJ’s saw declining sales in its home and seasonal categories.
“We had a tougher quarter in our home and our seasonal businesses,” said Eddy. “Those were more subject to tariffs. That’s where much of our inventory cuts happened.”
The persistent trend of shoppers being more cautious about their spending comes amid economic pressures and low consumer sentiment. Many Americans have been cutting back their spending in key areas as their finances worsen, according to a recent survey from EY-Parthenon.
How Americans are adjusting their budgets:
- Approximately 1 in 4 U.S. consumers felt worse off financially in December than they did the month before.
- About 70% flagged feeling moderate or major concern about the elevated cost of living, particularly around groceries.
- The top three areas where consumers are cutting spending are travel, restaurants and entertainment.
Source: EY-Parthenon
Consumers will continue to be value-conscious and selective “well into 2026,” which will “continue to shape the competitive landscape for retailers and brands,” warned Will Auchincloss, EY-Parthenon Americas retail sector leader, in a press release.
“Consumers are increasingly selective, with everyday essential goods taking priority as households reassess where they can pull back,” Auchincloss added. “Squeezed budgets are pushing retailers to double down on value, pricing discipline, and everyday relevance to win in 2026.”
BJ’s CEO bets big on a major store change to take on rivals
To attract customers in this challenging retail environment, BJ’s is focusing not only on providing value but also on convenience by expanding its retail footprint nationwide.
In 2025, BJ’s opened 14 new clubs across eight different states, a move that has yielded positive results for the company.
“These clubs as a whole are delivering sales, membership, and profit that are well above expectations,” said Eddy during the call.
Related: Sam’s Club makes major product change as shoppers cut back
He said that membership in these clubs is up by more than 30% from the company’s initial expectations. On-time renewal rates at these locations are also about 9% higher than the company’s chain average.
“This new class of clubs is the best class of clubs we’ve opened in any of the years since we’ve gone public,” said Eddy.
BJ’s plans to accelerate this growth over the next few years, a strategy that threatens its top rivals, Costco and Sam’s Club.
“We remain on track to deliver our commitment of 25 to 30 new clubs over 2025 and 2026,” said Eddy. “As we look out at the new club pipeline, we would expect this pace of openings to continue over coming years.”
Next month, BJ’s plans to enter the Dallas-Fort Worth market with a new club opening, an area Eddy claims is growing rapidly.
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“We heard this week that there are more homes being built in the Dallas-Fort Worth market than in the entire state of California,” he said. “Certainly a place with very, very high growth.”
Currently, Costco has about 634 locations across the U.S., while Sam’s Club has over 600. BJ’s falls behind with a store footprint of about 280.
The move from BJ’s comes as its main competitors also plan to rapidly expand their retail footprints.
Costco CEO Ron Vachris said during an earnings call last week that the company plans to open about 30 new clubs worldwide each year. Also, Sam’s Club previously announced plans to open 15 new clubs across the globe annually.
As BJ’s has its eyes set on store expansions, it expects its comparable club sales (excluding gas) in fiscal year 2026 to increase by 2% to 3% year over year.
Related: Kroger adds generous offer for customers as grocery prices rise
