New membership fees go into effect in the new year
Following in the footsteps of Costco earlier this year, BJs Wholesale Club is raising its membership fees for the first time in seven years.
Since the last membership fee increase, the Company [BJs] has transformed its business with a relentless focus on delivering value to members, the company said in a statement. Todays announcement allows the Company to invest in an even stronger value proposition for its 7.5 million member base, which continues to grow.
Whats new?
BJs announced the membership price increase during its recent third quarter earnings call, explaining that all changes will go into effect January 1, 2025.
The price of the Club membership fee will increase $5, totaling $60 per year. Similarly, the Club+ membership will increase $10, totaling $120 per year.
However, with the price increase also comes a new perk for Club+ members. BJs said that under the new guidelines, Club+ members will receive two free same-day deliveries for orders $50 or more during each annual membership period.
Club+ members also receive 2% cashback on most purchases at BJs and $0.05/gallon off gas at BJs.
High-income source for BJs
Membership fees account for a significant source of income for BJs. The company reported that income from membership costs alone increased 8.4%, or nearly $115 million, from the third quarter of 2023.
Over the course of the entire year, membership fees have yielded nearly $340 million in income for the company.
Our third quarter results demonstrate the combination of great value and strong execution, said Bob Eddy, Chairman and Chief Executive Officer, BJs Wholesale Club. We delivered robust membership growth and hit a milestone of 7.5 million members. Our value proposition continues to resonate in new and existing markets.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-11-21 21:49:15
