Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NATICK, MA–Despite tight credit that could affect its partners, BJ’s Wholesale Club will increase its store growth next year, opening six to eight new stores in existing markets, executives said at the company’s third quarter conference call.

Three units will open in the fourth quarter, for a total of four for this year. But next year will nearly double that growth, despite financing problems.

“We may be cautious with our share repurchase to make sure we can fund chain expansion as needed,” said Laura Sen, president.

Net sales for the third quarter of 2008 were approximately $2.4 billion, an increase of 13.4% over the third quarter of 2007. Aided by high gas prices during the quarter, the company reported net income of $28.2 million, compared to net income of $22.7 million.

“Since we started selling gasoline in 1998, we have never seen such market conditions,” said Frank D. Forward, CFO.

Comparable store sales excluding gas rose 6.6%, with a total comp increase of 11.9%. Food comp sales rose approximately 11% as shoppers move from supermarkets and eating out.

“It is clear that we are capturing a bigger share of our member’s grocery budget and we believe that we are benefiting from a decline in casual restaurant dining,” Sen said.

General merchandise sales declined approximately 1%, with television sales hit particularly hard. The company expects this pattern to hold in the fourth quarter, with strong food sales offsetting weaker general merchandise sales.

BJ’s currently operates 177 clubs in 15 states.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.