BJ’s Wholesale Club Reports Strong Third-Quarter Gasoline Sales

BJ’s Wholesale Club Holdings Inc. has announced that its same-store gasoline sales for the third quarter of this year have risen by 3% compared to the previous year. This impressive growth comes at a time when volumes in the fuel industry as a whole have been declining. According to OPIS figures, U.S. gas stations saw an average decline of 3.4% during the same period.

While BJ’s same-store sales, excluding gasoline, remained relatively flat year over year in Q3, the overall club traffic showed growth compared to last year and remained consistent with the second quarter of 2023.

Bob Eddy, the Chairman and CEO of BJ’s, expressed optimism about the company’s performance, stating, “In the third quarter, we gained market share in retail over each of the prior two quarters, as well as the last three years.” He further highlighted that BJ’s overall market share has grown by 60 basis points from its pre-Covid level.

Not only has BJ’s seen growth in market share within the retail sector, but it has also taken significant strides in the gasoline market. Despite facing a double-digit decline in industry volume compared to pre-pandemic levels, BJ’s managed to grow comparable gallons on flat retail prices. Eddy attributes this success to the value members gain from the company’s low-priced gas offering.

According to OPIS MarketSharePro figures, BJ’s gas brand market share by visit count increased to 0.62% in Q3, up from 0.60% in 2022 and 0.40% in the third quarter of 2019. This upward trend further highlights the company’s strong performance in the gasoline sector.

BJ’s Wholesale Club’s robust third-quarter gasoline sales demonstrate its ability to outperform the market and attract loyal customers. With a focus on providing value and offering competitive prices, BJ’s continues to solidify its position as a leader in the retail and fuel industries.

BJ’s Expects Strong Gasoline Margins in Q4

BJ’s, the retail fuel company, announced that their gasoline margins have exceeded expectations, contributing positively to their bottom line. Although they did not disclose specific details about the retail fuel margins, the company anticipates that gasoline margins will remain robust in Q4 due to price volatility. However, in the long term, BJ’s foresees that margins will eventually stabilize in the “low teen” range.

According to OPIS MarginPro, U.S. retail gas margins averaged 37.5% in the third quarter, a decline from 53.8% during the same period last year. The Impact of Volatility

The company attributes the profitability gained from volatility in the fuel market, influenced by ongoing global conflicts. BJ’s expects this trend to continue throughout Q4. However, they emphasized that their primary goal is not to solely maximize gas margins. Instead, they believe that attracting customers to their parking lots through the gas business is essential for their long-term growth and success.

Currently headquartered in Marlborough, Massachusetts, BJ’s has expanded its operations to 239 clubs and 169 BJ’s Gas locations across 20 states. During an investor call, it was announced that BJ’s recently entered Alabama and anticipates opening five new clubs in the fourth quarter, bringing the total number of new clubs launched this year to nine.

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