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BJ's Wholesale (BJ) Ramping Up Digitization to Woo Shoppers

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BJ's Wholesale Club Holdings, Inc. (BJ - Free Report) remains committed to providing consumers greater flexibility and convenience when they shop online. With consumers increasingly resorting to digital transactions, the company has been sparing no effort to bolster omni-channel operations, enhance digital services and ramp up delivery services.

Enhancing Shopper Experience

BJ's Wholesale has been directing resources toward expanding digital capabilities in order to better engage with members and provide them a convenient way to shop, including same-day delivery, curbside pick-up and buy-online, pickup-in-club (BOPIC). Management believes that digitally engaged members have higher average baskets and make more trips per year than members who shop in-club only.

The company has built a strong digital portfolio with,,, and the BJ’s mobile app. This enables members to buy, review products and digitally add coupons to their membership card. Markedly, the company has launched curbside pickup and expanded BOPIC service for fresh and frozen grocery items at all its locations.


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Initiatives to Strengthen Digital Services

BJ's Wholesale remains on track with its plan to allow members to use EBT payments, when shopping on for in-club pickup and curbside pickup. The company’s members in Florida and North Carolina can utilize their EBT card for SNAP qualified items during checkout, when they shop on for in-club pickup or contactless curbside pickup. The service enables members to check their card balance and use multiple payment options as well.

In its prior efforts to strengthen digital offerings, BJ's Wholesale added several new features to its app including easier search and scan functionalities, personalized product recommendations, and seamless navigation for discovering deals and products.

BJ's Wholesale entered into a three-year exclusive agreement with CommerceHub, a leading e-commerce platform that allows online order fulfillment and delivery solutions. The company’s partnership with Citizens Pay for providing customers with improved online financing solutions for large purchases is also encouraging.

Efforts Are Paying Off

We note that digitally-enabled sales rose 31% during the first quarter of fiscal 2021. On a two-year stacked basis, the metric soared 381% and drove nearly 7 percentage points of merchandise comparable sales, excluding gasoline sales. On a stacked basis, the company witnessed sturdy growth in all its digital channels, especially BOPIC, curbside pickup and same-day delivery. A significant portion of digital growth is being fulfilled through clubs.

Wrapping Up

Quite evidently, BJ's Wholesale is leaving no stone unturned to improve top-line performance and expand customer base, be it through better pricing, private label offerings, merchandise initiatives or digital solutions. These endeavors have been contributing to growth in membership signups and renewals.

Impressively, shares of this Zacks Rank #3 (Hold) company have climbed 16.1% in the past six months against the industry’s decline of 6.1%.

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