BJ’s Wholesale is gaining popularity among consumers nationwide, posing a major threat to its top competitors in the warehouse club space.
In its second-quarter earnings report for 2025, BJ’s revealed that its membership numbers grew to a record 8 million, even though it recently hiked its membership rates.
Also, according to recent data from Placer.ai, foot traffic in its stores increased by 5% year over year during the quarter, beating Costco, which saw its store visits spike only by 3.2%, and Sam’s Club, whose visits increased by 1.6%.
Despite increased consumer momentum, BJ’s comparable club sales decreased 0.3% year over year. Also, general merchandise sales declined by 2.2% year over year, while services remained flat.
During an earnings call in August, BJ’s Wholesale CEO Bob Eddy said members are becoming “more cautious” about their spending in stores as they grow increasingly concerned about economic pressures, including tariffs and inflation.
“We did see members across all income levels turn a bit more cautious during the quarter, driven by the uncertain macro environment,” said Eddy. “Despite this change in consumer sentiment, our members continue to count on BJ’s, and total spending increased in total and on a per-member basis, with low-income households demonstrating incredible loyalty.”
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BJ’s Wholesale launches bold offer to attract holiday shoppers
Amid this significant shift in customer behavior, BJ’s has announced the return of a generous deal to help lure price-conscious shoppers into its stores during the holiday season.
Between Nov. 1 and Nov. 10, BJ’s members who spend $150 or more in a single in-club transaction will be eligible to receive a “free fresh or frozen” Butterball turkey, according to a new press release.
Customers who qualify will be able to claim their free turkey coupon in the BJ’s app or their BJs.com account between Nov. 15 and Nov. 26. The free turkey coupon has a maximum value of $25. It excludes organic turkeys and is available while supplies last.
“We know our members look forward to our free turkey giveaway each year,” said Dave Rajkovich, senior vice president of perishables at BJ’s, in the press release. “BJ’s savings of up to 25% off grocery store prices every day, combined with a free turkey, delivers unbeatable holiday value and convenience to the families who depend on us. We’re honored to be part of their celebrations.”
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The move from BJ’s comes after Costco began offering members $70 off its eight-person turkey dinner meal kit last month, a deal that is valid through Dec. 1 while supplies last.
Sam’s Club is also offering a Thanksgiving meal that can feed a family of 10 for under $100 this year. Additionally, it vows to deliver the pre-cooked Thanksgiving items to shoppers within two hours.
It is no surprise that retailers are ramping up their Thanksgiving meal deals, as a recent survey from financial services company Empower found that many consumers nationwide plan to make drastic changes to their spending for the November holiday due to higher prices.
How Americans plan to battle higher costs for Thanksgiving:
- Approximately 68% of Americans expect Thanksgiving to be more expensive due to tariffs and inflation.
- More than 1 in 4 consumers plan to skip Thanksgiving due to high costs.
- Also, 38% will serve roasted chicken instead of turkey for Thanksgiving to save money, while 30% are considering burgers, pizza, or fast food instead of a traditional meal.
- About 52% will search for pre-packaged “meal deal” bundles to stretch their dollars.
Source: Empower
BJ’s Wholesale may see less spending from a vital group of customers
BJ’s and other retailers also face the threat of significant changes to Supplemental Nutrition Assistance Program (SNAP) benefits, which provide food assistance to low-income individuals and families with monthly funds via an EBT card to purchase groceries.
Due to the current government shutdown, which has been in effect for 35 days, SNAP food benefits were put on pause at the start of November.
In a statement to TheStreet, RTMNexus Chief Operating Officer Vanessa Louis said that a pause on SNAP will mostly harm smaller retailers.
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“I think you could have a greater impact on smaller retailers, like Dollar General and other dollar stores in rural areas, which often rely on customers who use SNAP benefits,” said Louis. “These stores also tend to hire employees who rely on those benefits. Over the long term, changes here could really affect those communities.”
The Trump administration, however, plans to restart benefits, providing only half of the normal amount by using money from an Agriculture Department contingency fund.
This could have a major impact on holiday shopping this year, since millions of Americans are SNAP recipients. According to recent data from the U.S. Department of Agriculture, 41.7 million Americans, which is 12.3% of the population, received SNAP benefits in fiscal year 2024.
Grocery spending among SNAP recipients vs. non-SNAP recipients:
- SNAP recipients spend an average of $832on groceries monthly, which is 20% higher than what non-SNAP recipients spend.
- They shop at an average of 6.6 retailers each month for groceries, compared to 6.1 for non-SNAP shoppers.
- On average, SNAP recipients spend $20.80 per grocery trip, which is 12% less than non-SNAP shoppers.
Source: Numerator
“When the government limits the usual SNAP benefits to only half the norm this month, it’s more than just a short-term cut, it has ripple effects into the holiday economy,” said RTMNexus CEO Dominick Miserandino in a statement to TheStreet.
“Families relying on those dollars may put off non-essentials, reduce early holiday shopping and holiday meal spending. This segment of the economy switches from holiday spending to survival causing a ripple effect.”
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