BJ's Wholesale On Track To Hit Own Brand Penetration Rate Goals
Officials with BJ’s Wholesale Club said the retailer remains on track to reach its own brand sales penetration rate of 30% as consumers respond positively to its growing private label assortment.
Bob Eddy, the retailer’s president and CEO, said more than 95% of its own brand products earn ratings of 4 out of 5 stars, which demonstrates the rigor in which BJ’s teams ensure they are offering the best combination of assortment, quality, and price.
He pointed to the relaunched Wellsley Farms snack nuts program that has earned 4.9 stars, and its new line of Berkley Jensen food storage bags that have received 4.8 stars from shoppers.
As previously reported by Store Brands, an online review of BJ’s assortment of food storage bags found Berkley Jensen freezer gallon double zip bags (152 count) for $9.49, Berkley Jensen freezer quarter double zip bags (216 count) for $9.49, Berkley Jensen sandwich bags (580 count) for $9.49, and a Berkley Jensen food storage variety pack (340 count) for $11.99.
By comparison, Ziploc gallon freezer bags (152 count) seen on bjs.com were priced at $19.99, and Ziploc quart freezer bags (216 count) were priced at $19.49.
“We're growing our own brand sales penetration each quarter and remain confident in our goal of reaching 30% in the future,” he said.
Eddy’s insight into BJ’s Wholesale’s private label efforts came during the company’s second quarter conference call. The retailer, in the quarter ended August 3, said net sales increased 4.8% to $5.1 billion. Net income increased to $145 million in the second quarter of fiscal 2024 compared to $131.3 million in the second quarter of fiscal 2023. Comparable club sales were up 3.1% and membership revenue grew 9.1% to $113.1 million.
“For the 10th consecutive quarter, we drove traffic gains in our business,” said Eddy. “We also grew market share inside our clubs and at the gas pumps. Those short-term gains are great, but we're playing a long game and we're also seeing progress in our long-term initiatives. Perhaps the greatest marker of long-term progress is our growth in membership fees.”
Eddy said BJ’s perishables, grocery, and sundries division delivered comparable growth of nearly 3% in the second quarter with perishables such as fresh produce and dairy leading this growth. General merchandise sales were also up more than 1% and the retailer’s seasonal general merchandise comps were up more than 1,000 basis points from the first quarter.
