A popular discount retailer that maintains its brick-and-mortar stores primarily on the East Coast has unveiled plans that could take the chain nationwide.
Massachusetts-based BJ’s Wholesale Club unveiled its aggressive 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 retail chain expanded into Tennessee and Alabama last year and recently announced plans to expand even further as it moves into Kentucky, the chain’s 21st state.
Many have also speculated about an additional location in the Lone Star State as The Dallas Morning News BJ’s is reportedly considering a location east of Dallas (the third location considered in the state), marking the retail chain’s furthest west location.
“Our real estate portfolio is the strongest it has been in years,” a BJ’s spokesman said. The Boston Globe.
Massachusetts-based BJ’s Wholesale Club unveiled its aggressive expansion plan, as the popular discount chain will open ten new stores by the end of its fiscal year in January and add at least ten more by the end of 2025.
The Westborough-based retail chain expanded into Tennessee and Alabama last year and recently announced plans to expand further as it moves into Kentucky, marking the chain’s 21st state.
The publicly traded company has increased its store count by 25 percent over the past decade, with most of its additions occurring in the past four years. The wholesale club’s annual revenue now hovers around $20 billion, up 60 percent from just four years ago.
BJ’s hasn’t opened this many stores in nearly two decades, as an expansion of this caliber is not typically typical for a brick-and-mortar retailer. With stores that take up roughly the size of two football fields, construction costs and interest rates are high, making the numerous expansions all the more surprising.
Store opening costs are expected to total $30 million during the current six-month period, nearly double the amount from the same period last year.
“We’re excited to offer the unmatched value our membership offers to even more families,” said Bill Werner, executive director of BJ’s Wholesale Club in a statement.
“As we continue to expand our presence along the East Coast and beyond, we look forward to helping more families save up to 25 percent off grocery prices every day,” Werner added.
The company’s goal is to become the supermarket of choice for consumers. A typical BJ’s store offers more than 7,000 different items, compared with the roughly 4,000 offered by the chain’s main competitor, Costco.
BJ’s hasn’t opened this many stores in nearly two decades, as an expansion of this caliber is typically out of the ordinary for a traditional retailer.
Since the main goal is to attract customers from traditional supermarkets and not just from other wholesale clubs, the main concern will be to secure enough capital to continue with the ambitious transnational plans.
With stores roughly the size of two football fields, construction costs and borrowing rates are high, making the numerous additions all the more surprising.
‘BJ’s Wholesale Club offers a convenient, one-stop shopping experience featuring a wide selection of fresh food, produce, a full-service deli, household essentials, pet supplies, exclusive offers and much more,’ the statement read.
‘The new clubs will also delight shoppers with a treasure hunt experience by offering a variety of local and seasonal items, as well as home décor, apparel, toys, the latest technology and much more.’
A basic membership at BJ’s also costs less, just $55 a year, compared to $65 at Costco.
BJ’s also has more produce, more fresh foods, and smaller packages of nonperishable items than Costco.
Most supermarkets offer more variety than big box stores, without the membership fees, yet BJ’s says its groceries are 25 percent cheaper than chain grocery stores, in part because of its private labels: Wellsley Farms and Berkley Jensen.
Since the main goal is to attract customers from traditional supermarkets and not just from other wholesale clubs, the main concern will be to secure enough capital to continue with the ambitious transnational plans.
And outperform your competition in prime real estate locations.
Each new BJ’s Wholesale Club location is expected to create approximately 150 jobs and hiring is expected to begin soon for the new locations.