BJ’ Wholesale Club has long been considered the underdog of the warehouse club universe—but not anymore. The chain has painted a target on the back of its No. 1 competitor, Costco, and after a promising fiscal first-quarter from BJ’s, the fight is very close. Here’s how BJ’s stacks up against Costco going into the latter part of 2025.
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BJ’s reported "strong execution" in first-quarter 2025 fiscal earnings.
The first half of 2025 has put many U.S. businesses into economic strife. On the contrary, BJ’s put up impressive numbers in its first-quarter fiscal 2025 report.
Net income increased to $149.8 million from $110 million last year, while traffic growth contributed to a 3.9 percent increase in year-over-year comparable club sales, according to a news release. Membership fee profits are up by 8.1 percent, bringing in $120.4 million. BJ’s also reported a 35 percent increase in digitally-enabled comparable sales growth.
"We reported a strong start to the year, demonstrating the power of our model and continued momentum in our long-term growth priorities," BJ’s CEO Bob Eddy said in a statement. "Delivering great value is essential in today’s environment, and I am proud of our team members who remain committed to taking care of the families who depend on us."
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BJ’s isn’t worried about potential tariff price hikes.
A new report from Yale Budget Lab indicates that grocery prices could increase 2.6 percent due to tariffs, with fresh produce prices vulnerable to increases of more than 5 percent due to tariffs on imported goods from China, Mexico, and Canada. At a glance, the economic research group said this could cost the average American household an additional $4,900 in groceries if cost-cutting strategies aren’t put in place, such as buying in bulk.
This is the stark reality for many grocers and shoppers, but BJ’s CEO said the company isn’t phased by President Donald Trump’s recent tariff hikes. "Tariffs aren’t new to us," Eddy told analysts on a company’s earnings call, per Chain Store Age.
Unlike its competitors, BJ’s said it was better prepared to handle a trade war after learning from "past disruptions." Tariffs haven’t had a significant impact on BJ’s financial wealth thanks to the "tools we’ve used in past disruptions and are applying with discipline today," Eddy explained.
That said, BJ’s is staying vigilant, noted Eddy: "While upward pressure on costs may drive prices higher, we are doing everything possible to minimize the impact to our members."
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BJ’s is adding 30 new stores to its fleet.
BJ’s plans to open 25-30 stores over the next two fiscal years, six of which are slated to open in 2025. Already this year, BJ’s rolled out new clubs in Brooksville, FL; Myrtle Beach, SC; and Southern Pines, NC. The grand openings count towards the wholesaler’s two-year strategic plan, which includes expanding its footprint in the Dallas-Fort Worth area.
"We are eager to continue our expansion by bringing unbeatable value, convenience and assortment to the Dallas-Fort Worth community," Eddy said in a statement. "Economic expansion and a growing population make Texas a great fit for us."
As for what’s coming next, BJ’s said the following locations are set to open in 2025:
- Whippany, NJ
- Staten Island, NY
- Delray Beach, FL
- Warner Robins, GA
- Sevierville, TN
- Casselberry, FL
Each new location is expected to create 100-150 jobs in its community. The Delray Beach location will be formatted as a BJ’s Market that "provides a convenient, expedited grocery shopping experience" and offers "top-selling fresh foods, produce, sundries and seasonal products." It will be the second of its kind (the first-ever market is located in Warwick, RI).
