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Beloved discount store on East Coast reveals plans to expand across the country

J.Martin2 hr ago
A popular discount store that's kept its brick-and-mortars primarily on the East Coast has revealed plans that could take the chain national.

Massachusetts-born BJ's Wholesale Club divulged its aggressive plan to expand as the discount chain will open 10 new stores by the end of its fiscal year in January and will add at least another 10 by the end of 2025.

The Westborough-based retail chain expanded into Tennessee and Alabama last year and recently announced its plans to expand even further as it is set to move into Kentucky , marking the chain's 21st state.

Many have also speculated an additional location in the lone-star state as The Dallas Morning News reported BJ's is eyeing a location east of Dallas - the third location of consideration in the state - marking the retail chain's most westward location.

'Our real estate pipeline is the strongest it's been in years,' a BJ's spokesperson told The Boston Globe .

The publicly traded company has boosted its store count by 25 percent in the last decade with most of its additions coming in the last four years. Right now, the wholesale club's annual revenue sits around $20 billion - 60 percent higher than just four years ago.

BJ's has not opened this many stores in nearly two decades as an expansion of this caliber is typically out-of-character for a brick-and-mortar retailer. With stores roughly spanning the size of two football fields, construction costs and borrowing rates are high - making the many additions even more surprising.

Store opening costs are expected to total $30 million during the current six-month period, almost twice the amount from the same time a year ago.

'We are excited to deliver the unbeatable value our membership offers to even more families,' Bill Werner, an executive at BJ's Wholesale Club said in a statement.

'As we continue to expand our footprint along the East Coast and beyond, we look forward to helping more families save up to 25 percent off grocery story prices every day,' Werner added.

The company's goal is to become consumers' supermarket of choice. A typical BJ's store carries more than 7,000 different items, compared to around 4,000 at the chain's primary competitor, Costco.

'BJ's Wholesale Club offers a convenient one-stop shopping experience that includes a vast selection of fresh foods, produce, a full-service deli, household essentials, pet supplies, exclusive offerings and much more,' the statement reads.

'The new clubs will also delight shoppers with a treasure-hunt experience by providing an assortment of both local and seasonal items, as well as home décor, apparel, toys, the latest in tech and much more.'

The basic membership at BJ's costs less too at just $55 annually, versus Costco at $65.

BJ's also stocks more produce, more fresh food and smaller pack sizes for nonperishable goods than Costco.

Most supermarkets offer more variety than warehouse clubs, without the membership fees, however BJ's says its food items are 25 percent cheaper than the grocery chains, in part because of its house brands - Wellsley Farms and Berkley Jensen.

With the primary aim set to draw customers away from traditional supermarkets and not solely other wholesale clubs, the biggest qualm will be ensuring enough capital to continue the ambitious cross-country plans.

And beating its competition to the best real estate locations.

Each new BJ's Wholesale Club location is expected to create approximately 150 jobs and hiring is expected to start soon for the new locations.

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