BJ’s CEO warns customers of a harsh new reality in stores

BJ’s Wholesale (BJ) , which has over 7.5 million members, is contemplating a major change in its stores amid a concerning shift in customer behavior.

In BJ’s first-quarter earnings report for 2025, it revealed that its comparable club sales only increased by 1.6% year-over-year, which is about half of what analysts were expecting.

💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵

The lower-than-expected sales come after BJ’s raised its membership fees earlier this year. Its basic tier increased by $5, making the plan $60 a year. For its most expensive tier, a Club+ membership, the annual fee increased from $110 to $120.

Amid weak sales, BJ’s collected $120.4 million in membership fee income during the quarter, which is 8.1% higher than what it generated during the same time period last year.

BJ's Wholesale Club has noticed a concerning customer trend.

Image source: Monika Graff/Getty Images

BJ’s customers are starting to switch gears

BJ’s foot traffic also lagged behind its main competitors during the quarter. According to recent data from Placer.ai, the number of customers visiting BJ's stores increased by 1.2% year-over-year, while Costco’s visits per location spiked by 3.6%, and Sam’s Club's rose by 2.7%.

During an earnings call on May 22, BJ’s CEO Bob Eddy said that members are becoming more picky with their purchases amid concerns about the economy.

“Consumers across the country have digested meaningful inflation over the past few years, and the uncertain economic environment drove members to prioritize value in their purchases during the quarter,” said Eddy.

He said that while categories such as perishable food items and electronics saw increased sales, consumers are spending less on big-ticket items.

“Unfavorable weather and pressures on consumer sentiment impacted big-ticket, highly discretionary categories such as patio sets, gazebos, and outdoor sheds in the quarter,” said Eddy.

BJ’s CEO issues stern warning to customers

He also addressed a major concern that is on the minds of many shoppers: tariffs, which are taxes companies pay to import goods from overseas.

Last month, President Donald Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs.

The pause on reciprocal tariffs will end in July, and as a result, roughly 60 countries will soon see increased tariff rates. If businesses choose to pass down this extra cost, consumers could pay higher prices for goods.

During the earnings call, Eddy said that BJ’s will be “less impacted” by tariffs than many of its competitors, as it already knows how to navigate the challenging environment; however, he warned that the wholesale club may soon have to raise its prices.

More Retail:

“I'm so proud of our teams across merchandising, supply chain, finance, and analytics who have remained agile in navigating these challenges,” said Eddy. “This includes sourcing from alternative countries of origin, reassessing orders, and collaborating with our vendors, all to drive the best outcomes for our members. We're always leaning into our model to deliver value, and while upward pressure on cost may drive prices higher, we are doing everything possible to minimize the impact to our members.”

He also said that BJ’s may have to change items in its stores and even remove products that “might not make any sense” for its members.

The move from BJ’s comes as many consumers consider drastically changing their shopping habits to prepare for Trump’s tariffs.

According to a recent Market Pulse survey from InMoment, roughly 56% of consumers said they expect prices for goods and services to increase due to tariffs. In response to these expected price hikes, 60% of respondents said they are planning to shop less rather than more.