Is BJ's Wholesale Becoming a Digital Powerhouse in Retail Clubs?

BJ's Wholesale Club Holdings, Inc. BJ is stepping firmly into the digital era as its latest quarter underscores the growing importance of technology in shaping member engagement. In the second quarter of fiscal 2025, digitally enabled comparable sales climbed 34% year over year, with two-year stacked growth of 56%. Services like buy online pick up in club, same-day delivery and ExpressPay have been central to this momentum, integrating e-commerce with the company’s physical footprint.

Management highlighted that more than 90% of digital orders are fulfilled by clubs. The company sees digitally engaged members as twice as valuable compared to in-club-only shoppers due to larger basket sizes and stronger renewal rates. The app has become the primary touchpoint. More than half of active members now use it regularly to clip coupons, locate products or preorder deli items. This explains why membership fee income reached a record $123.3 million in the second quarter, up 9% from last year.

Importantly, the digital push aligns with BJ's Wholesale Club’s broader goal of driving convenience and improving member retention. With membership climbing to a record 8 million and higher-tier penetration hitting 41%, management views digital integration as central to sustaining growth. As macro pressures shape consumer habits, BJ’s focus on omnichannel convenience positions it well to remain relevant.

BJ's Wholesale Club is continuing to invest in digital capabilities and sees this as a cornerstone for future growth, especially as consumer preferences shift toward hybrid retail experiences.

Digital Growth at Walmart and Costco

Walmart Inc. WMT is aggressively scaling its digital ecosystem with second-quarter fiscal 2026 e-commerce sales soaring 25% globally, led by 26% growth in Walmart U.S. and Sam’s Club. Walmart highlighted that store-fulfilled pickup and delivery rose nearly 50%, while membership income and advertising revenues surged in double digits, reinforcing its omnichannel model. AI investments, including the launch of Sparky, Walmart’s AI assistant, aim to further personalize the shopping experience.

E-commerce continued to stand out for Costco Wholesale Corporation COST with comparable sales climbing 13.6% for the fourth quarter of fiscal 2025, or 13.5% after adjusting for fuel and currency impacts. Momentum was even stronger in August, when the metric surged 18.4%. For the fiscal year, Costco reported e-commerce comparable sales growth of 15.6%, reinforcing the importance of the company’s investments in omnichannel capabilities. Costco continues to integrate online and in-club experiences, using digital tools to boost convenience and member loyalty.

What the Latest Metrics Say About BJ's Wholesale Club

BJ's Wholesale Club stock has risen 24.7% over the past year, against the industry’s decline of 10.4%. 
 

From a valuation standpoint, BJ's Wholesale Club’s forward 12-month price-to-earnings ratio stands at 21.81, higher than the industry’s ratio of 20.12. BJ carries a Value Score of B.
 

The Zacks Consensus Estimate for BJ's Wholesale Club’s current financial-year sales and earnings per share implies year-over-year growth of 4.9% and 6.7%, respectively. 

BJ's Wholesale Club currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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