BJ’s Wholesale Club Inc. (
BJ), a leading warehouse club operator in the United States, recently posted soft sales for the five-week period ended October 2, 2010.
After registering a growth of 2.4% in August 2010, BJ’s experienced soft comparable club sales growth of 1.5% in September. For the thirty-five week period comps climbed 4.9%. Rising gasoline prices positively impacted the comparable club sales by 0.7% during the reported month, and by 2% for the thirty-five week period.
The company witnessed growth in comparable club sales in the first-four weeks, which dropped in the fifth week. The maximum sales were registered in the third week. Excluding gasoline sales, BJ’s merchandise comparable club sales for September climbed 0.8%. For the thirty-five week period comps increased 2.9%.
Net sales for the month of September jumped 3.6% to $961.6 million from $928.1 million delivered in the same month last year. For the thirty-five week period, sales soared 8.9% to $7,027.3 million from $6,451.3 million posted in the same period last year.
Traffic diminished marginally. After increasing 3% in August, traffic (excluding gasoline sales) rose by about 2% in September 2010 compared with the corresponding month last year. The average transaction amount dropped by about 2%, reflecting a further decline of 100 basis points over the fall of 1% witnessed in August.
Heavy job losses and the recent economic downturn have changed the way consumers used to shop. BJ’s experienced a 4% rise in food sales, which contributed to the growth of comparable club sales. Sales of general merchandise slid by 5%.
By categories – cigarettes, cookies, dairy, deli, juices, meat, milk, prepared foods, produce, small appliances, snacks, soda and water reported robust sales. On the contrary, apparel, books, health and beauty aids, household chemicals, oils and shortening, paper, pre-recorded video and televisions delivered sluggish sales.
BJ’s, which faces stiff competition from
Costco Wholesale Corporation (
COST), currently operates 189 clubs in 15 states.
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