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BJ's Gears Up for Smaller Box Shops

NATICK, MA-Coming off a Q2 showing a net income of 35.1 million, the wholesale club is eyeballing smaller footprints for stores.

By Ryan Clark | Updated on August 20, 2009

NATICK, MA-BJ’s Wholesale Club, during a Q2 earnings call, looked to the future of a smaller, more accessible real estate market. Although the club company’s profit was down year-over-year, it was only a slight dip from $36.5 million in net income at the end of Q208 to $35.1 million this year.

President and COO of BJ’s, Laura Sen, explained that the wholesale club was planning a few smaller-sized stores with a footprint of around 85,000 square feet. The notion, Sen said, was to find a model that worked for a middle-sized market more efficiently than a larger club. The smaller-box offers BJ’s some flexibility in space, as well as an ability to push into a dense market, which they could not entertain with their full-box. “Certainly, we have the flexibility to run clubs like this and we know that they can produce some very attractive ROIs, so we are going to be able to slip into some marketplaces that we know competition could not go and within our current geography,” Sen said.

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