Good Times for BJ’s Wholesale Club
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.
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
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
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.
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?