BJ's is number three in the warehouse club race but the chain is finding some momentum in today's tough economy because of changes it has made in recent years to focus more on individual consumer needs.
Ken Naumes, a former Costco shopper who joined BJ's, explained his switch to The Boston Globe. "We can get everything we need for lower prices and it's more convenient. Some of it is bulk, but it's smaller bulk than at Costco."
BJ's saw sales increase 11.6 percent in October and the 177-chain, which was struggling just two years ago, is looking to increase the pace of new club openings.
In 2006, BJ's brought Herb Zarkin out of retirement to lead the chain. The company began making changes, including closing its pharmacy business, reducing store hours, cutting prices on staples such as milk, reducing SKUs to focus on top sellers and bringing in higher quality fresh foods. It also used its gas stations as a draw when prices at the pump were making it tougher on consumers to make ends meet.
Discussion Questions: What is your view on the key factors behind BJ's success? Specifically, how important has the company's focus on individual consumers been to its turnaround over the past two years?