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BJ's Bets on Digital and AI to Drive Growth and Member Engagement
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Key Takeaways
BJ's digitally enabled comp sales rose 31% in Q4 FY2025, with 57% stacked over two years.
BJ's digital penetration climbed from 2% in FY2018 to 16% in FY2025 as omnichannel adoption grew.
BJ's is investing in AI and app features like Ask Bev, ExpressPay, price scan and deli pre-ordering.
Digitization has emerged as a core growth engine for BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) , strengthening member engagement and driving sales growth. Recent results show that digital capabilities have become central to its operating model. Digitally enabled comparable sales rose 31% in the fourth quarter of fiscal 2025, with two-year stacked growth of 57%. Digital penetration has climbed from 2% in fiscal 2018 to 16% in fiscal 2025, reflecting increasing adoption of omnichannel services among members.
Digitally engaged members are significantly more valuable than those who shop only in the club. This higher value is driven by increased trip frequency, higher overall spend and stronger renewal rates. To sustain this momentum, BJ’s is focusing on club-centric fulfillment, with more than 90% of digital sales fulfilled directly from its physical locations. This infrastructure supports high-demand services like buy online, pick up in club and curbside pickup.
BJ’s continues to add services that reduce friction and increase perceived membership value. ExpressPay supports faster in-club trips, while same-day delivery and pickup options expand convenience for recurring consumables baskets. By focusing on digital tools like the price scan feature and deli pre-ordering within the BJ's app, the company aims to provide a seamless shopping experience for its eight million members.
The next phase appears centered on personalization and scalability. Investments in AI tools such as the Ask Bev assistant and backend enhancements signal a push toward a more intuitive shopping experience.
BJ’s Wholesale Peer Performance: Walmart & Costco
Walmart Inc. (WMT - Free Report) continues to scale its digital ecosystem aggressively, with e-commerce sales rising 24% globally and contributing 23% of total sales, highlighting strong omnichannel momentum. Walmart is leveraging store-fulfilled delivery, AI-driven tools, and marketplace expansion to enhance convenience and drive higher basket sizes. Walmart’s comparable sales growth of 4.6% in the U.S. division reflects increased customer transactions supported by digital adoption.
Costco Wholesale Corporation’s (COST - Free Report) digital push is delivering clear gains. In the second quarter of fiscal 2026, digitally enabled comparable sales rose 22.6%, e-commerce site traffic increased 32%, app visits jumped 63%, and average online order value grew 15%. Costco is also piloting automated pay stations that can process pre-scanned orders in about eight seconds, underscoring digital’s growing role in sales and convenience.
What the Latest Metrics Say About BJ's Wholesale
BJ's Wholesale has seen its shares tumble 18.7% over the past year compared with the industry’s decline of 17%.
Image Source: Zacks Investment Research
From a valuation standpoint, BJ's forward 12-month price-to-earnings ratio stands at 20.32, higher than the industry’s ratio of 17.49 but below its median level of 21.24. BJ carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BJ’s current financial-year sales and earnings per share implies year-over-year growth of 5.7% and 2.7%, respectively. For the next fiscal year, the consensus estimate indicates a 6.9% rise in sales and 8% growth in earnings.
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BJ's Bets on Digital and AI to Drive Growth and Member Engagement
Key Takeaways
Digitization has emerged as a core growth engine for BJ’s Wholesale Club Holdings, Inc. (BJ - Free Report) , strengthening member engagement and driving sales growth. Recent results show that digital capabilities have become central to its operating model. Digitally enabled comparable sales rose 31% in the fourth quarter of fiscal 2025, with two-year stacked growth of 57%. Digital penetration has climbed from 2% in fiscal 2018 to 16% in fiscal 2025, reflecting increasing adoption of omnichannel services among members.
Digitally engaged members are significantly more valuable than those who shop only in the club. This higher value is driven by increased trip frequency, higher overall spend and stronger renewal rates. To sustain this momentum, BJ’s is focusing on club-centric fulfillment, with more than 90% of digital sales fulfilled directly from its physical locations. This infrastructure supports high-demand services like buy online, pick up in club and curbside pickup.
BJ’s continues to add services that reduce friction and increase perceived membership value. ExpressPay supports faster in-club trips, while same-day delivery and pickup options expand convenience for recurring consumables baskets. By focusing on digital tools like the price scan feature and deli pre-ordering within the BJ's app, the company aims to provide a seamless shopping experience for its eight million members.
The next phase appears centered on personalization and scalability. Investments in AI tools such as the Ask Bev assistant and backend enhancements signal a push toward a more intuitive shopping experience.
BJ’s Wholesale Peer Performance: Walmart & Costco
Walmart Inc. (WMT - Free Report) continues to scale its digital ecosystem aggressively, with e-commerce sales rising 24% globally and contributing 23% of total sales, highlighting strong omnichannel momentum. Walmart is leveraging store-fulfilled delivery, AI-driven tools, and marketplace expansion to enhance convenience and drive higher basket sizes. Walmart’s comparable sales growth of 4.6% in the U.S. division reflects increased customer transactions supported by digital adoption.
Costco Wholesale Corporation’s (COST - Free Report) digital push is delivering clear gains. In the second quarter of fiscal 2026, digitally enabled comparable sales rose 22.6%, e-commerce site traffic increased 32%, app visits jumped 63%, and average online order value grew 15%. Costco is also piloting automated pay stations that can process pre-scanned orders in about eight seconds, underscoring digital’s growing role in sales and convenience.
What the Latest Metrics Say About BJ's Wholesale
BJ's Wholesale has seen its shares tumble 18.7% over the past year compared with the industry’s decline of 17%.
Image Source: Zacks Investment Research
From a valuation standpoint, BJ's forward 12-month price-to-earnings ratio stands at 20.32, higher than the industry’s ratio of 17.49 but below its median level of 21.24. BJ carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for BJ’s current financial-year sales and earnings per share implies year-over-year growth of 5.7% and 2.7%, respectively. For the next fiscal year, the consensus estimate indicates a 6.9% rise in sales and 8% growth in earnings.
Image Source: Zacks Investment Research
BJ currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.