BJ's Wholesale Club Digital Push Lifts Sales and Membership Growth

BJ’s Wholesale Club Holdings, Inc. BJ is making significant strides in its digital transformation, with the latest quarter underscoring how technology is reshaping member engagement. In the second quarter of fiscal 2025, digitally enabled comparable sales advanced 34% from a year ago, marking a two-year stacked increase of 56%. The success stems from services such as buy online, pick up in club, same-day delivery and ExpressPay, which blend digital convenience with BJ’s physical network.

A key advantage lies in fulfillment, with more than 90% of digital orders processed through clubs. This model not only drives efficiency but also enhances member loyalty. BJ’s sees digitally engaged customers as twice as valuable as traditional shoppers, as they spend more and renew more often. The company’s mobile app has become central to this engagement, with more than half of members using it to clip coupons, locate products and even preorder deli items. That shift supported record membership fee income of $123.3 million, up 9% year over year.

Membership continues to be a growth driver, reaching an all-time high of 8 million. Higher-tier memberships now represent 41% of the base, a sign of deeper engagement. Management emphasizes that digital adoption is not simply an add-on but a cornerstone of the company’s strategy to improve convenience and strengthen retention, particularly as consumers adapt spending habits to a tougher macroeconomic backdrop.

Peers Accelerating in the Digital Race: Walmart & 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.

Conclusion

For BJ’s, the challenge will be sustaining this momentum against formidable competitors while continuing to expand digital capabilities. The company’s hybrid approach, tightly integrating physical clubs with online services, offers a differentiated path to growth. If BJ’s can maintain its pace of digital adoption while driving deeper membership penetration, it may remain well-positioned to capture long-term opportunities in a rapidly evolving retail landscape.

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