BJ’s Wholesale Club To Raise Membership Prices for the First Time in 7 Years

For the first time in seven years, BJ’s Wholesale Club will hike its membership prices. The subscription prices have remained the same since 2018.

The warehouse store chain, a rival to Costco and Sam’s Club, announced on Nov. 21 in its third-quarter fiscal 2024 earnings report that the cost of membership will increase by $5 to a total of $60 for the store’s basic plan. The company’s most expensive tier, called Club +, will rise by $10 to a total of $120.

The new rates go into effect on Jan. 1, 2025. BJ’s explained in the release that the increased prices enable the company to “invest in an even stronger value proposition for its 7.5 million member base, which continues to grow.”

BJ’s Wholesale Club is raising annual fees https://t.co/WSu0wSZRdd

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Annual fees have been one of the biggest profit-generating areas for BJ’s. They help the retailer offset expenses to keep its prices down. According to the press release, income from memberships has jumped 8.4% year-over-year to $115 million. The company credits “strength in membership acquisition, retention, and higher tier membership penetration across both new and existing clubs” for the increase in members.

BJ’s joins Costco and Sam’s Club in hiking membership fees. At the start of September, Costco’s annual membership prices increased, rising from $60 to $65 for Gold Star members and $120 to $130 for executive memberships. Sam’s Club last raised its fees in 2022, increasing the cost of a basic membership from $45 to $50 and the cost of a Plus membership from $100 to $110.

BJ’s Wholesale Club Announces Positive Q3 Fiscal 2024 Results

BJ’s third quarter fiscal results include improvements via the addition of three new clubs to its roster and four new gas stations, according to the press release. Also, comparable club sales increased by 3.8% year-over-year, led by strong traffic.

This good news trickles down from a shakeup at the top of the organization that helped foster company growth. BJ’s recently announced that Scott Schmadeke, senior vice president of field and fresh operations, was named executive vice president and chief operations officer, effective immediately. Schmadeke is responsible for all BJ’s clubs, distribution centers, logistics, and asset protection and safety. He will report to Bob Eddy, chairman and chief executive officer, and will serve on the company’s executive leadership team.

“Scott and Krystyna are dynamic leaders with deep knowledge of our company and impressive records at BJ’s,” Eddy said. “These changes will ensure that we continue to offer world-class service to our members and drive efficiency across our network as we deliver unbeatable value and profitable growth.”

He concluded, “I look forward to continuing to work with Scott and Krystyna as we take care of the families who depend on us.” Schmadeke and Krystyna Kostka, the current senior vice president of operations who has been named chief supply chain officer, will fill the role previously held by Jeff Desroches, executive vice president and chief operations officer, who has resigned from his role.