BJ's Wholesale Club Holdings, Inc. (BJ): Business Model Canvas [Dec-2025 Updated]

You're digging into the financials of BJ's Wholesale Club Holdings, Inc., trying to map out exactly how they generate revenue in late 2025. Honestly, the business model is a classic warehouse play, but it's now supercharged by a high-margin membership engine, boasting a record 8 million members. They are successfully pairing that core value-offering up to 25% savings on bulk essentials-with digital convenience, which helped drive comparable sales up 34% in Q2 FY2025, even as merchandise sales hit $5.26 billion that quarter. To see how these pieces fit together, from their $123.3 million in Membership Fee Income to their strategic supplier partnerships, check out the full nine-block canvas below.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that power the operations and growth engine for BJ's Wholesale Club Holdings, Inc. as of late 2025. These aren't just vendor agreements; they are strategic alignments designed to drive efficiency, community impact, and member value.

The January 8, 2025, multi-year partnership with Genpact is a major operational undertaking. Genpact is applying its expertise across several key support functions to enhance agility and drive innovation. This includes finance and accounting, indirect procurement, HR, and merchandising. The goal is to position BJ's for long-term success through digital adaptations and data-driven process governance.

This entire operational overhaul hinges on technology integration. ServiceNow is serving as the core platform for managing and integrating the new workflows stemming from the Genpact collaboration. This signals a sophisticated approach to digital transformation across the enterprise functions mentioned. While specific internal adoption metrics for BJ's aren't public, the broader ServiceNow ecosystem is seeing partner investments in enablement and AI certifications quadruple, suggesting a high-value, modern platform deployment at BJ's. ServiceNow's focus areas for partners include generative AI and intelligent automation, which are likely being integrated into the new finance and procurement processes.

The commitment to community is quantified through the long-standing relationship with Feeding America. As of June 2025, this partnership has delivered over 155 million meals across its 15-year history. A recent example of this commitment was the pledge of $1.25 million in early 2025 through the BJ's Charitable Foundation to build capacity at local food banks, funding items like new trucks and refrigeration units. This support is critical, especially as partners like the Franklin Food Pantry saw demand increase by 38% from 2023 to 2024.

For the core business of moving merchandise, strategic suppliers are essential, leveraging the company's focused inventory strategy. BJ's Wholesale Club Holdings, Inc. maintains a limited assortment of approximately 7,000 stock-keeping units (SKUs), which allows for greater procurement scale on select items. Looking at the thirteen weeks ended November 1, 2025, the company reported net sales of $5.22 million, supported by membership fee income of $126,297 for that same period, showing the direct financial reliance on the value proposition delivered through these supplier relationships.

The relationship with Capital One, the financial partner for the co-branded BJ's One+ Mastercard, directly ties member loyalty to spending. Cardholders must hold the $110 annual BJ's Perks Membership tier to access the top rewards. The card offers 5% back in rewards on eligible BJ's purchases and 2% back on purchases made everywhere else the Mastercard is accepted. Furthermore, cardholders receive a 15 cents off/gallon discount at BJ's Gas locations. WalletHub gave the card an overall rating of 4.2/5 in late 2025.

Here's a quick look at the key partnership areas and their associated metrics:

The focus on operational partners like Genpact and ServiceNow is clearly aimed at improving the cost structure, which supports the competitive pricing needed to maintain the value proposition that drives membership fee income, which was $126,297 for the thirteen weeks ending November 1, 2025. The credit card partnership directly incentivizes higher spend, with the 5% in-club rewards being a major draw for Club+ members.

• Genpact expertise covers finance and accounting, indirect procurement, HR, and merchandising.
• The Feeding America partnership has resulted in capacity-building grants totaling $1.25 million in early 2025.
• The BJ's One+ Mastercard requires the $110 annual BJ's Perks Membership.
• Q3 2025 Net Sales reached $5.22 million for the thirteen-week period.
• The company operates 255 clubs and 190 BJ's Gas® locations across 21 states.

Finance: draft Q4 2025 cash flow projection incorporating expected CapEx for new club openings by Monday.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Key Activities

Operating and expanding the physical club footprint involves managing a network that reached 278 locations across the United States as of November 15, 2025. This physical base is critical, as more than 90% of digital sales were fulfilled in-club during Q2 FY2025, leveraging services like buy online, pick up in store (BOPIS) and same-day delivery. The company pioneered the warehouse club model in New England in 1984 and, as of May 2025, operated 250 clubs across 21 states. By the time of the Q2 FY2025 results, the club count had grown to 255 locations. This physical presence is a core asset, especially in the core New England market where BJ's Wholesale Club Holdings, Inc. operates more than three times the number of clubs compared to its next largest warehouse club competitor.

Bulk merchandise procurement and inventory management are centered on delivering value, offering up to 25% savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. The core activity supports net sales of $5.3 billion in Q2 FY2025. Comparable club sales, excluding gasoline, increased by 2.3% in Q2 FY2025, driven by traffic growth.

Driving digital transformation is a major focus, with digitally enabled comparable sales growing 34% in Q2 FY2025. This growth reflects a two-year stacked comp growth of 56% for digital sales. More than 90% of these digital orders were fulfilled through the physical clubs. Furthermore, more than half of the active member base now uses the mobile app regularly, showing adoption of digital convenience tools like ExpressPay checkout.

Managing the membership program and retention efforts is fundamental, as the member count reached a record 8 million members in Q2 FY2025. This base generated Membership Fee Income (MFI) of $123.3 million in Q2 FY2025, an increase of 9.0% year-over-year. Customer loyalty is high, with the tenured member renewal rate reported at 90% during fiscal 2024. The value of digitally engaged members is significant, as they are approximately twice as valuable as non-digital members.

New club development is supported by significant capital allocation. Capital expenditures for the full Fiscal Year 2025 are projected to be approximately $800 million. During the first quarter of Fiscal 2025, BJ's Wholesale Club Holdings, Inc. opened five new clubs and four new gas stations. The company maintained plans to open eight more clubs by the end of the fiscal year, and announced grand openings for three new clubs on December 2, 2025.

Here's a quick look at some key 2025 performance indicators related to these activities:

The management of the membership tier mix is also a key activity, with 41% of members opting for higher-tier memberships as of Q2 FY2025, which is an all-time high.

• Digital sales fulfillment through clubs: Over 90% of digital orders.
• Traffic growth: Fourteenth consecutive quarter of traffic growth as of Q2 FY2025.
• New clubs opened in Q1 FY2025: Five.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Key Resources

You're looking at the core assets that power the entire operation for BJ's Wholesale Club Holdings, Inc. as of late 2025. These aren't just line items on a balance sheet; they are the engines driving member value and growth.

The membership base itself is a critical resource, representing a loyal, recurring revenue stream. As of the second quarter of fiscal 2025, the company reached a record milestone of 8 million members. This base is increasingly monetized through premium offerings, with higher-tier memberships reaching an all-time high penetration of 41% of the total membership base in Q2 FY2025. Membership fee income for that quarter alone hit $123.3 million.

The physical footprint and its integration with fuel services form another massive resource. The real estate network is expanding, supporting both the core warehouse club model and the convenience of on-site fuel. As of early December 2025, this network included 257 clubs and 194 on-site BJ's Gas locations across 21 states. Separately, as of mid-November 2025, the total number of BJs Wholesale Club locations in the United States stood at 278.

Proprietary private label brands are essential for margin differentiation. The company heavily relies on its own brands, specifically Wellsley Farms® and Berkley Jensen®, which represent a significant portion of net sales. While the latest figure available shows an annual private brand share of 23% in 2021, management has expressed intent to accelerate the steady improvement in own-brand penetration to enhance margins.

The investment in advanced supply chain and digital fulfillment technology is a clear differentiator. This is evidenced by the rapid adoption of digital channels. Digitally enabled comparable sales surged by 34% year-over-year in Q2 FY2025, building on a two-year stacked growth of 56%. Operational efficiency is being driven by these tech investments, with reported reductions in order pick time by over 45% from Q1 2025 data. Furthermore, over 90% of digital orders were fulfilled directly through the clubs, showcasing the physical network's role in the digital strategy.

Operational expertise is reflected in member loyalty and expansion execution. The company maintains a strong operational rhythm, underscored by a tenured member renewal rate that was reported at 90% in fiscal 2024. The dedicated club team members are tasked with executing the expansion plan, which included opening 3 new clubs in December 2025 and having plans to add 8 more clubs in the remainder of fiscal 2025.

• Digitally Enabled Comp Sales Growth (Q2 FY2025): 34%
• Two-Year Stacked Digital Comp Growth: 56%
• Digital Order Fulfillment via Clubs: Over 90%
• Mobile App Regular Usage: Over half of active members
• Tenured Member Renewal Rate: 90%

Finance: draft 13-week cash view by Friday.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Value Propositions

You're looking at the core reasons why the 8 million members BJ's Wholesale Club Holdings, Inc. serves choose them over other options as of late 2025. The value proposition centers on delivering tangible financial benefits and shopping convenience.

Significant Savings and Overall Value

BJ's Wholesale Club Holdings, Inc. consistently touts saving members up to 25% off grocery store prices every day. This commitment to value is quantified by the company stating that, on average, families save $500 a year shopping at BJ's. This value perception is central, with the company emphasizing that members receive approximately 10 times the value of their membership fee through various benefits. The company's comparable club sales, excluding gasoline, grew 3.9% year-over-year in the first quarter of fiscal 2025, showing the model's continued resonance.

Differentiated Coupon Strategy

A key differentiator for BJ's Wholesale Club Holdings, Inc. is its policy on coupons. They are the only warehouse club that accepts all manufacturer coupons. Furthermore, the company allows members to stack one BJ's-issued coupon with one national manufacturer coupon on a single item. This stacking strategy can lead to savings of 30-50% on groceries and essentials. Research suggests that strategic coupon stackers save an average of $27 per $100 spent compared to using single coupons.

One-Stop Shopping and Fuel Discounts

The convenience of one-stop shopping is delivered across 255 warehouse clubs operating in 21 states as of the second quarter of fiscal 2025. Members find a curated assortment including fresh foods, general merchandise, and gasoline. Fuel savings are a major component. While Club+ Card members receive a 5¢ off/gal discount, general members save an average of 10 to 30¢ per gallon at BJ's Gas® stations.

Bulk Purchasing and Pack Sizes

BJ's Wholesale Club Holdings, Inc. provides bulk, family-sized packs of essentials, positioning its pricing below mass retailers while offering larger pack sizes. This appeals directly to large households and small businesses looking to streamline procurement and reduce per-unit costs.

Tiered Membership Benefits: Club vs. Club+

The value proposition is segmented across two tiers, with the higher tier, Club+, offering enhanced digital and delivery benefits. The annual fee for the basic Club Card increased to $60 starting January 1, 2025, while the Club+ Card increased to $120.

Here is a comparison of the core benefits for the two primary membership tiers as of late 2025:

The two free same-day deliveries for Club+ members are a significant addition, as the standard delivery fee is $14.99. The Chairman and CEO noted that this single new benefit is worth about three times the fee increase for Club+ members. The penetration of this higher tier is driving membership fee income, which grew 9.0% year-over-year to $123.3 million in the second quarter of fiscal 2025.

The overall digital engagement supports these value propositions, with digitally enabled comparable sales growing 34% in Q2 Fiscal 2025.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Customer Relationships

You're looking at how BJ's Wholesale Club Holdings, Inc. keeps its members paying year after year; it's all about the recurring fee and layered value. The core relationship is membership-based, fee-driven, which locks in predictable revenue. This model stabilized cash flow, as seen when Membership Fee Income (MFI) hit a record $123.3 million in the second quarter of fiscal 2025, marking a 9% year-over-year increase.

The structure is tiered, designed to encourage upsells. The fee hike that took effect on January 1, 2025, set the new annual rates. This move, the first in seven years, was based on a member base that had already grown to 7.5 million by late 2024, and was later reported at 8 million members in Q2 2025.

Here's the quick math on the new fee structure:

The push toward digital is central to modernizing this relationship, making digitally engaged members about twice as valuable as in-club-only shoppers. The mobile app has become the primary touchpoint for many. More than half of active members now use it regularly, with some reports indicating usage by 60% of members. This digital adoption is strong; digitally enabled comparable sales jumped 34% year over year in Q2 Fiscal 2025.

BJ's Wholesale Club Holdings, Inc. backs its offerings with a strong commitment, explicitly stating a 100% Money-Back Guarantee on products. This reduces the perceived risk of trying new items or services. Furthermore, the company drives deeper engagement through personalized value delivery:

• Club+ members earn 2% Back in Rewards on most purchases.
• Club+ members receive an additional 5¢ off/gallon at BJ's Gas every fill-up.
• The Club+ tier reached 41% penetration of the total membership base in Q2 2025, an all-time high.
• Personalized digital offers and instant savings are delivered via the app, which also facilitates services like Buy Online Pick Up In Club (BOPIS).

The stickiness of the base is evident in the renewal figures. The company maintains an impressive 90% tenured renewal rate as of Q2 2025. The Club+ tier, costing $120 annually, offers benefits like two free same-day deliveries (a service that normally has a flat fee of $14.99), which the CEO noted was worth about three times the fee increase for those members alone. The company is defintely using these digital perks to justify the fee increase and improve the quality of the revenue stream.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Channels

You're looking at how BJ's Wholesale Club Holdings, Inc. gets its products and services into the hands of its members, and the data shows a clear focus on blending physical presence with digital convenience. The primary channel remains the physical store, but the digital integration is where the real momentum is building, which is smart for long-term stickiness.

Physical warehouse clubs (primary sales channel).

BJ's Wholesale Club Holdings, Inc. operates a network of large-format warehouse clubs. As of late 2025, the company has 257 clubs operating across 21 states. This physical footprint is the core of the business, where members shop for groceries, electronics, and other bulk goods. The company is actively expanding this channel, reaffirming plans to open between 25 and 30 new clubs across fiscal 2025 and 2026. The newest clubs opened in the 2025 class are performing 25% ahead of plan on membership counts, suggesting shrewd site selection.

BJ's Gas stations for discounted fuel.

Integrated with many club locations, the BJ's Gas stations serve as a significant convenience driver, helping members save on fuel costs. As of December 2025, there are 194 BJ's Gas locations on-site at their clubs. Members often realize extra savings through the BJ's Fuel Savers Program when they purchase qualifying merchandise inside the club, directly linking the fuel channel to in-club spending.

E-commerce platform (website and mobile app).

The digital channel, encompassing the website BJs.com and the mobile app, is rapidly gaining importance. Digitally enabled comparable sales showed significant acceleration, climbing 34% year-over-year in the second quarter of fiscal 2025, representing a two-year stacked growth of 56%. This digital penetration reached 11% of sales in Q2 2025, a notable increase from 8% in 2024. The mobile app is the central digital touchpoint; more than half of active members use it regularly to clip coupons, find products, or place orders.

Digital fulfillment options: BOPIS, curbside pickup, same-day delivery.

The success of the digital push is heavily reliant on integrating e-commerce with the physical clubs for fulfillment. A key operational metric is that more than 90% of all digital orders are fulfilled directly through the physical clubs. This fulfillment strategy primarily utilizes Buy Online, Pick Up In-Club (BOPIS) and same-day delivery services. While these store-based fulfillment options can cost a little more due to team member picking, management believes the resulting loyalty improvements more than offset the margin impact. The ExpressPay feature, allowing members to scan items with their phones and skip the traditional checkout line, is another growing digital convenience integrated into the physical channel.

Direct mail and email marketing for member communication.

Communication to the member base is heavily driven by digital means, supporting the membership model. Membership fee income, which is a high-margin, recurring revenue stream, hit a record $126.3 million in the third quarter of fiscal 2025, growing 9.8% year-over-year. This growth is supported by a record total membership base of 8 million members. The higher-tier Club+ membership penetration reached a record 41% as of Q2 2025, indicating deeper engagement, which is often cultivated through targeted email offers and communications about exclusive savings.

Here's a quick look at the scale of these channel metrics as of the latest reported periods in 2025:

The mobile app is used regularly by more than half of active members. The company plans to open 7 new clubs in Q4 alone as part of its aggressive expansion strategy.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Customer Segments

You're looking at the core of BJ's Wholesale Club Holdings, Inc.'s value capture-who exactly is paying for the membership and walking through those warehouse doors as of late 2025. The customer base is clearly segmented, but the focus remains heavily on driving membership volume and deepening engagement within that base.

The primary segment is definitely the value-conscious families and households seeking bulk savings. These are the suburban shoppers, often in the 35-64 age range, who prioritize stocking up on groceries and essentials to manage household budgets effectively. They are looking for significant savings on everyday items, which is why the value proposition resonates so strongly with them, especially when economic pressures like inflation are a concern.

Next, you have the small-to-medium-sized businesses (Business Memberships). While the consumer segment (B2C) forms the core, the B2B segment provides a consistent revenue stream by supplying operational essentials and office supplies to smaller enterprises. This segment benefits from the same bulk pricing structure.

Geographically, BJ's Wholesale Club Holdings, Inc. remains highly concentrated, serving shoppers in the Eastern half of the US. This regional focus is a defining characteristic, though the company is actively planning for future diversification, with confirmed expansion into the Dallas-Fort Worth market slated for 2026. For now, their market dominance is East Coast-centric.

Crucially, the company is heavily focused on digitally-engaged members who drive greater trips and spending. Management has noted that these members are about twice as valuable as traditional shoppers. This group actively uses the mobile app-which more than half of members use regularly-to clip coupons, check inventory, or use services like buy online, pick up in club (BOPIS) and same-day delivery.

Here's a quick look at the scale of the membership base as of the second quarter of fiscal 2025, which sets the stage for these segments:

The success of the membership model is clear, especially after the January 2025 fee increase, which didn't stop the growth. The tenured renewal rate is impressive at 90%, showing that once a member joins, they defintely see the value. This loyalty is the bedrock of the entire business model.

You can see the segmentation in action through their digital adoption:

• Members using the mobile app: More than half.
• Value of digitally engaged members: Twice as valuable.
• Traffic growth: Increased 5% year-over-year in Q2 2025, beating competitors.
• New Club Openings in 2025 (YTD Q2): Five new clubs.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Cost Structure

The Cost Structure for BJ's Wholesale Club Holdings, Inc. is heavily weighted toward the cost of the merchandise it sells, followed by the expenses required to operate its physical clubs and support its growing digital presence.

Cost of Goods Sold (COGS) for bulk merchandise (largest cost)

The largest component of the cost structure is the Cost of Sales, which reflects the price paid for the merchandise inventory sold to members. For the thirteen weeks ended August 2, 2025 (Second Quarter of Fiscal 2025), the Cost of sales represented 83.2% of net sales. This figure is critical as the merchandise gross margin rate, which excludes gasoline sales and membership fee income, increased by 10 basis points over the same quarter in fiscal 2024, showing slight efficiency gains despite inflationary pressures.

Club operations and labor costs (salaries, wages, benefits)

Operating the physical clubs involves substantial Selling, General and Administrative expenses (SG&A). For the first six months of fiscal 2025, SG&A totaled $1.55 billion, an increase from $1.47 billion for the first six months of fiscal 2024. This increase was primarily driven by higher labor and occupancy costs, which are directly tied to the opening of new clubs and gas stations. For the second quarter of fiscal 2025 alone, SG&A was $786.4 million, up from $750.3 million year-over-year.

These operational costs are directly influenced by the company's growth strategy, as evidenced by the fact that BJ's Wholesale Club Holdings, Inc. reached a record 8 million members as of the second quarter of fiscal 2025.

Capital expenditures for new clubs and supply chain (approx. $800 million in FY2025)

Capital expenditures (CapEx) are a significant planned outlay, reflecting the commitment to physical expansion and supply chain enhancement. The guidance provided for fiscal 2025 is capital expenditures of approximately $800 million, driven by the growing pipeline of future clubs and construction activities. This compares to CapEx of approximately -$587.98 million in fiscal 2025, reflecting increased investment in property, plant, and equipment, likely tied to the company's expansion initiatives, based on one analysis of capital spending figures.

Real estate leases and property maintenance

Real estate costs are embedded within the SG&A structure, specifically noted as part of the increased occupancy costs driving the year-over-year rise in SG&A following new club openings. Furthermore, an increase in the number of owned clubs has resulted in increased depreciation expense year-over-year for BJ's Wholesale Club Holdings, Inc.

Technology and digital platform development costs

While specific technology development costs aren't itemized in the primary cost buckets, the investment is evident in the digital performance. Digitally enabled comparable sales growth was 34% in the second quarter of fiscal 2025, indicating continued spending to support and enhance the digital experience for members.

Here's a quick look at key cost-related and operational metrics for the first half of fiscal 2025:

The cost structure is also impacted by financial management decisions:

• Interest rate on senior secured first lien term loan was reduced to SOFR plus 175 basis points per annum as of November 4, 2024.
• The company has a new share repurchase program authorized up to $1.0 billion, expiring in January 2029.
• In Q2 fiscal 2025, the Company repurchased 375,000 shares totaling $41.2 million.

Finance: draft 13-week cash view by Friday.

BJ's Wholesale Club Holdings, Inc. (BJ) - Canvas Business Model: Revenue Streams

You're looking at the core ways BJ's Wholesale Club Holdings, Inc. brings in cash, which is pretty standard for a warehouse club but with a strong membership focus. The revenue streams are built around moving product and locking in that recurring membership income.

Merchandise Sales (Net Sales) is the biggest piece, obviously. For the thirteen weeks ended August 2, 2025 (Q2 FY2025), Net Sales hit $5.26 billion. That's a 3.2% increase year-over-year for the quarter. It's important to note that comparable club sales, which is a measure of sales from stores open over a year, actually decreased by 0.3% overall, but that was directly because of lower retail fuel prices. When you strip out the gas effect, merchandise-only comparable club sales were up 2.3%, which shows the core business is gaining traffic. For the first six months of fiscal 2025, Net Sales totaled $10,290,001 thousand.

The second major pillar is Membership Fee Income (MFI). This is pure, high-margin revenue, and it's growing nicely. Q2 FY2025 MFI was $123.3 million, a 9.0% jump from the prior year. This growth is tied to reaching a record 8 million members. To be fair, the increase in annual membership fees that took effect in January 2025 helped this number, too. Higher-tier memberships are also a bigger part of the mix, making up 41% of the total, which is an all-time high.

Here's a quick look at the key components for Q2 FY2025:

Beyond the main two, BJ's Wholesale Club Holdings, Inc. pulls in revenue from a few other areas, though specific dollar amounts for these weren't broken out in the Q2 FY2025 highlights you mentioned. You defintely need to track these as they add to the total revenue figure of $5.38 billion for the quarter.

The other revenue streams include:

• Gasoline sales at BJ's Gas locations. While lower fuel prices negatively impacted comparable sales by 0.3%, the volume of gas sold still contributes significantly to the top line, even if it's a lower-margin component.
• Ancillary services. This covers things like optical, tire sales, and travel services offered to members.
• Credit card income. This comes from the co-branded Mastercard program, which partners, like Cap One, help drive adoption to boost long-term lifetime value.

Finance: draft 13-week cash view by Friday.