BJ’s Wholesale Club (BJ) - 2026 Q4 - Annual Report

Membership and Revenue - The company has over 8 million members, with annual membership fees of $60 for Club membership and $120 for Club+ membership [33]. - Membership fee income for fiscal year 2025 was $499.8 million, reflecting over 25 consecutive years of growth in this income stream [33]. - Club+ members and co-branded Mastercard members represented 42% of total memberships and 52% of merchandise spend in fiscal year 2025, up from 39% and 50% respectively in fiscal year 2024 [49]. Operations and Locations - As of fiscal year end 2025, the company operates 263 warehouse clubs and 199 gas stations across 21 states [32]. - The company aims to open new clubs and gas stations as part of its growth strategy, focusing on high-density and high-traffic locations [36]. - As of January 31, 2026, the company operates 199 gasoline stations, primarily self-service, maintaining prices below the average retail price in respective markets [44]. Product Offerings - The company's private label brands, Wellsley Farms and Berkley Jensen, account for approximately 27% of total net sales, excluding gasoline [33]. - Private label products under Wellsley Farms and Berkley Jensen accounted for approximately 27% of total net sales, excluding gasoline, in fiscal year 2025 [43]. - Perishables, grocery, and sundries constituted approximately 87% of merchandise sales for fiscal year 2025, while general merchandise and services made up about 13% [48]. Digital and Marketing Strategy - The company emphasizes the importance of maintaining a relevant digital experience for its members to respond to consumer trends [20]. - The company has built a robust digital portfolio, including BJs.com and the BJ's mobile app, enhancing shopping convenience and member engagement since fiscal year 2019 [45]. - The company’s marketing strategies include social media, direct mail, and community involvement, resulting in lower marketing expenses compared to typical retailers [50]. Financials and Debt - As of January 31, 2026, the total debt outstanding was $520.0 million, including $120.0 million under the ABL Revolving Facility and $400.0 million under the First Lien Term Loan at interest rates of 4.77% and 5.43%, respectively [259]. - A 100 basis point change in prevailing market rates would cause annual interest costs to change by approximately $5.2 million [259]. Employee and Community Engagement - The company employs over 35,000 full-time and part-time team members as of January 31, 2026, with no union representation [66]. - The company focuses on providing competitive total rewards programs, including annual bonuses, 401(k) plans, and comprehensive health benefits for team members [69]. - The BJ's Charitable Foundation has awarded over $43.0 million to non-profit organizations and schools since its inception in 2004, supporting communities in areas such as hunger prevention, education, and health [71]. Pricing and Savings - The company claims to offer savings of up to 25% or more on a representative basket of groceries compared to typical supermarket competitors [21]. - The company utilizes a rolling average of measured prices for price comparisons, ensuring data is not older than 60 days [23]. - The company operates with a focus on high sales volumes and efficient operations to achieve profitability [37].