A popular discount retailer that has primarily located its physical stores on the East Coast has unveiled plans that could take the chain nationwide.
Massachusetts-based BJ’s Wholesale Club announced its ambitious expansion plan. The discount chain will open 10 new stores by the end of its fiscal year in January and add at least 10 more by the end of 2025.
The Westborough-based chain expanded into Tennessee and Alabama last year and recently announced plans to expand even further, entering Kentucky, the chain’s 21st state.
Many have also speculated about an additional location in the lone star state as The Dallas Morning News reported that BJ’s is eyeing a location east of Dallas — the third location under consideration in the state — marking the chain’s westernmost location.
“Our real estate pipeline is the strongest it has been in years,” a BJ’s spokesperson said The Boston Globe.
Massachusetts-based BJ’s Wholesale Club has unveiled its aggressive expansion plan as the popular discount chain will open 10 new stores by the end of its fiscal year in January and add at least 10 more by the end of 2025.
The Westborough-based chain expanded into Tennessee and Alabama last year, and recently announced plans to expand even further as it plans to move into Kentucky, the chain’s 21st state.
The publicly traded company has increased its store count by 25 percent in the past decade, with most of the additions coming in the past four years. Today, the wholesale club’s annual revenue is around $20 billion — up 60 percent from four years ago.
BJ’s hasn’t opened this many stores in nearly two decades, because an expansion of this magnitude typically doesn’t fit into a brick-and-mortar store. With stores roughly the size of two football fields, construction costs and loan rates are high, making the many additions even more surprising.
The cost of opening the stores is expected to total $30 million in the current six-month period, nearly double the cost in the same period a year ago.
“We are excited to bring the unmatched value of our membership to even more families,” Bill Werner, an executive at BJ’s Wholesale Club, said in a statement.
“As we continue to expand our presence across the East Coast and beyond, we look forward to helping more families save up to 25 percent on grocery store prices every day,” Werner added.
The company’s goal is to become the supermarket of choice for consumers. A typical BJ’s store carries more than 7,000 different items, compared to about 4,000 at the chain’s biggest competitor, Costco.
BJ’s hasn’t opened this many stores in nearly two decades, because such expansion typically doesn’t fit with a physical store.
With the main aim of luring customers away from traditional supermarkets and not just other wholesale clubs, the biggest concern will be finding enough capital to continue with the ambitious plans for the whole country.
With stores roughly the size of two football fields, construction costs and loan rates are high, making the many additions even more surprising
“BJ’s Wholesale Club offers a convenient one-stop shopping experience with a wide selection of fresh groceries, fruits and vegetables, a full-service deli, housewares, pet supplies, exclusive offers and much more,” the statement said.
‘The new clubs also offer shoppers a treasure hunt experience with an assortment of local and seasonal items, as well as home accessories, clothing, toys, the latest technology and much more.’
The basic membership at BJ’s also costs less, at $55 per year, compared to $65 at Costco.
BJ’s also has more fruits and vegetables, more fresh food, and smaller packages of non-perishable items than Costco.
Most supermarkets offer a wider selection than grocery stores, without the associated membership fees. BJ’s, however, says its groceries are 25 percent cheaper than those of chain stores, in part because of its Wellsley Farms and Berkley Jensen private labels.
The main goal is to take customers away from traditional supermarkets and not just from other wholesale clubs. The biggest challenge is to find enough capital to continue the ambitious plans for the entire region.
And stay ahead of the competition in the best real estate locations.
Each new BJ’s Wholesale Club location is expected to create approximately 150 jobs, and hiring for the new locations is expected to begin soon.