BJ's Wholesale Club, Inc. reported sales for July increased by 6% to
$650.5 million from $613.9 million. On a comparable club basis, July
sales increased by 1.5%.
The comp gain include a negative impact of 0.6% from sales of gasoline
and a negative impact of 0.4% from the absence of pharmacy sales versus
last year. In 2006, the company reported a comparable club sales
increase of 1.9% for July, including a contribution from sales of
gasoline of 1.1%.
On a comparable club basis, sales increased during the first three
weeks with the highest increase in week one. Sales were approximately
flat to last year in week four.
By region, the highest sales increases were in Metro New York and the
Mid Atlantic regions. Sales declined in the Southeast region, which has
been experiencing a higher level of competition and self
cannibalization than the rest of the chain.
Excluding sales of gasoline, traffic decreased by approximately 1%, due
in part to a change in the timing of BJ's annual spring trial
membership program versus last year. The average transaction amount for
the month of July increased by approximately 4%.
On a comparable club basis, food sales increased by approximately 5%,
driven by perishables, particularly bakery, cheese, dairy, frozen, meat
and produce. A decrease in general merchandise of approximately 1%
reflected a significant decline in sales of air conditioners as well as
a decrease in sales of furniture and toys, partly offset by strong
sales of books, televisions and video game hardware. The decline in
sales of furniture and toys was due primarily to major selling space
contractions in those departments versus last year. The increase in
book sales reflected the release of the seventh Harry Potter book.
Herb Zarkin, BJ's chairman, president and CEO commented, “There were a
number of factors impacting July comparable club sales results, which
decelerated from the 4% and 5% increases we reported in May and June.
First, we were up against a significantly higher level of coupon
distribution as well as very strong air conditioner sales in July 2006.
Additionally, last July we offered 90-day trial memberships throughout
the month as part of our Annual Spring Trial Membership Program. This
year, the cut-off for trial membership sign-ups was July 9. And
finally, gasoline had a negative impact of approximately 0.6% in July
versus a contribution of approximately 1% in both May and June. Taking
these factors into account, together with our continued strength in
food, we are pleased with our sales results for July 2007.”
For the second quarter ended August 4, total sales increased by 8.2% to
$2.25 billion and comparable club sales increased by 3.7%, including a
contribution from sales of gasoline of 0.7% and a negative impact from
the absence of pharmacy sales last year of 0.4%. For the second quarter
of 2006, the Company reported a total sales increase of 5.7% and a
comparable club sales increase of 1.8%, including a contribution from
sales of gasoline of 1.9%.
Zarkin continued, “For the second quarter, comparable club sales
results were consistent with our guidance and showed positive momentum
from the first quarter. Excluding sales of gasoline, traffic increased
by approximately 1% for the quarter and the average transaction amount
increased by approximately 3%. Comparable club sales of food increased
by approximately 5% and general merchandise sales increased by
approximately 0.5%.”
For the 26-week period ended August 4, 2007, total sales increased by
7.4% and comparable club sales increased by 3.0%, including a
contribution from sales of gasoline of 1.1% and a negative impact from
the absence of pharmacy sales versus last year of 0.4%.
The company currently operates 175 BJ's clubs in 16 states.