BJ's Wholesale Adds Fresh & Frozen Items to Curbside Pickups

In an effort to enhance shopping experience amid the coronavirus pandemic, BJ’s Wholesale Club Holdings, Inc. BJ announced the availability of contactless curbside pickup facility at all its club locations. Additionally, the company announced expansion of its buy online, pick up in-club services so as to include fresh and frozen grocery items. This facility, which is currently available at selected clubs, will be offered across all locations by the end of October 2020.

Expansion of Digital Services Bodes Well

Amid the ongoing pandemic, consumers are opting for online and contactless services. BJ’s Wholesale Club’s recent moves are well aligned with such altering shopping preferences.

The curbside pickup facility allows BJ’s Wholesale Club customers to get their online orders delivered straight to their car, without stepping into the store. Once customers receive notification from or on the BJ’s app that their order is ready for pickup, they need to simply park at one of the designated curbside parking spaces. By checking in on the BJ’s app, customers can notify the club regarding their arrival. The order will then be brought and loaded into the vehicle by one of the club’s members.

Apart from this, the company will expand its buy online, pick up in-club services to incorporate a wide range of fresh and frozen items, in addition to other grocery items, general merchandise and sundries.

We note that BJ’s Wholesale Club 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. The company has built a strong digital portfolio with,,, and the BJ’s mobile app.

The company’s approach toward its digital wing is yielding, as reflected in its second-quarter fiscal 2020 results. In the reported quarter, digitally-enabled sales soared 300%, and added 6 percentage points to comparable club sales, excluding gasoline sales. This followed an increase of 350% in the preceding quarter.

BJ’s Wholesale Club’s prudent efforts to boost omnichannel shopping along with well strategized assortments and brand expansion endeavors increased the company’s membership base. It now has more than 6 million paid members. Further, it is undertaking incremental personalized marketing approach to retain its newly-added members.

We expect such well-chalked endeavors to continue supporting BJ’s Wholesale Club’s top line in the forthcoming periods. This Zacks Rank #1 (Strong Buy) company’s shares have surged 24.2% in the past three months compared with the industry’s growth of 6.5%.

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Sprouts Farmers Market SFM has a trailing four-quarter average earnings surprise of 49.9% and a Zacks Rank #2 (Buy).

Dollar General DG has a long-term earnings growth rate of 12.5%. Currently, it carries a Zacks Rank #2.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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