On this page of StockholderLetter.com we present the latest annual shareholder letter from BJ's Wholesale Club Holdings, Inc. — ticker symbol BJ. Reading current and past BJ letters to shareholders can bring important insights into the investment thesis.
2023 Annual Report
Dear fellow shareholders,
Fiscal 2023 was another pivotal year for BJ's Wholesale Club, marked by strong financial results underpinned by
year-long traffic gains in our clubs and gas stations, robust membership and our unwavering focus on delivering
value to our members.
Our four strategic priorities continue to fuel our growth and strengthen the underlying fundamentals of our
business. Through disciplined execution and innovation, we have enhanced our value proposition, membership
engagement and market position this past year.
Improving member loyalty
Membership delivered another milestone year with membership fee income surpassing $400 million for the first
time in our company   s near 40-year history. We achieved 90% tenured renewal rate for the second consecutive
year. Our BJ   s clubs are now serving well over seven million members, having grown membership by about 35%
since our initial public offering in fiscal 2018.
While our strong value proposition has contributed to our growth, we also believe we have gotten better at
acquiring members. We are expanding membership in both new and existing markets, with our digital platforms
becoming a dominant source of that growth. Our intense focus on lifetime value continues to guide our strategies
to elevate member loyalty as well. In fiscal 2023, we launched our new co-brand credit card, offering first-class
rewards and customer service, which creates more loyal members. Higher-tier member penetration, which
includes our credit card tiers, was 38% as of fiscal 2023, up over 13 points from just five years ago. Our
achievements in fiscal 2023, in our view, illustrate our strong and loyal member base that continues to grow,
instilling confidence in the trajectory of our business.
Delivering an unbeatable shopping experience
A great shopping experience keeps our members coming back to shop with us, which deepens their loyalty and
increases their propensity to renew their membership. In the inflationary environment of the last two years, we
have relentlessly focused on delivering compelling pricing every day. In fiscal 2023, our pricing index against our
grocery competitors improved by about 100 basis points, demonstrating our commitment to helping our members
stretch their dollars in a landscape where consumers continue to seek value.
We continue to build our own brands     Wellsley Farms and Berkley Jensen     to provide our members with highquality products and meaningful savings. In fact, our own brands achieved record net sales in fiscal 2023, and
now account for more than a quarter of our business. We are confident in our goal of reaching 30% own brands
sales penetration over time.
Last year, we also began our general merchandise transformation. The treasure hunt experience in general
merchandise is where we believe we can make a profound impact in showcasing value and excitement to our
members, yet it is less than 15% of our business today. We believe we have significant opportunity to profitably
grow this division over the next few years. We are still early in our journey, but I am incredibly pleased with the
progress we have made throughout the year and believe we have the right talent, strategy and focus to drive future
success in general merchandise.
Delivering value conveniently
Digital comparable sales grew 20% in fiscal 2023, comprising 11% of our business. Our digitally enabled sales
have grown seven-fold since fiscal 2018, with more members leveraging our convenience offerings over the past
five years. The club value proposition has never been easier to access due to our efforts in digital and we will
continue to augment our conveniences in areas such as same-day delivery, in-app capabilities and personalization
to deliver even more value to our members.
Growing our footprint
We are strategically growing our presence. In fiscal 2023, we opened eight new clubs and 10 new gas stations and
entered two new states     Tennessee and Alabama. We remain incredibly pleased with the performance of our new
clubs, supported by strong membership. Building on this momentum, we expect to open approximately 12 new
clubs in fiscal 2024. This includes our exciting entry into our 21st state in Kentucky, our continued expansion in
Tennessee, and a couple of relocations. We   re also planning to open about 15 new gas stations. Looking beyond
this year, we   re continuing to build our new club pipeline and currently have more units in the pipeline than at
any time in the last 20 years.
Our strategic priorities firmly align with our commitment to maximizing shareholder value as we maintain our
view that investing in our business remains the best use of our capital. We believe our strong balance sheet grants
us significant financial flexibility as we grow our business and in light of our confidence in such growth, we have
also continued to return cash to you, our shareholders. Over the past five years, we have completed approximately
$625 million of share repurchases, and we expect that share buybacks will remain an important element of our
capital allocation strategy in the future.
Taking care of the families who depend on us
Our team members across our clubs, distribution centers and Club Support Center are unified by a single purpose:
   We take care of the families who depend on us.    Our purpose guides the decisions we make every day as we
look to take care of the members who rely on us for unbeatable value, our team members who rely on us for career
opportunities and the families in our communities who rely on us in times of need. We are particularly proud of
our efforts to nourish our communities. In fiscal 2023, the BJ   s Charitable Foundation made a $1 million grant to
support Feeding America   s mission to end hunger in the U.S. Over the years, we have partnered with Feeding
America and its network of food banks, providing over $8.5 million in grant funding and more than 125 million
meals to local families. Our purpose inspires us to embody the values that we believe will help our communities
continue to thrive for years to come.
Looking ahead
We are excited about the opportunities that lie ahead for our company. We are committed to providing exceptional
experiences for our members, delivering great value and fostering a culture of innovation and excellence across
our organization.
On behalf of our board and executive team, I would like to express my gratitude to our dedicated team members,
whose hard work and commitment to serving our members remain instrumental to our success. I would also like
to thank our members and shareholders for their continued support and confidence in BJ's Wholesale Club.
Sincerely,
Bob Eddy
Chairman and Chief Executive Officer

(,>3492?:9           
66666666666666666666666666666

66666666666666666666666666666
 := ?30 14>.,7 D0,= 09/0/  0-=@,=D        :=

 := ?30 ?=,9>4?4:9 ;0=4:/ 1=:8 +++++++++ ?: +++++++++
 :884>>4:9  470  :          
66666666666666666666666666666
  F$ (    $      &         $      
  C,.? 9,80 :1 =024>?=,9? ,> >;0.4140/ 49 4?> .3,=?0= 
66666666666666666666666666666
 07,B,=0

.J7J; EH EJ>;H @KH?I:?9J?ED E<
?D9EHFEH7J?ED EH EH=7D?P7J?ED

 $ - .   CFBEO;H
$:;DJ?<?97J?ED )E 
   ,8;@>  =4A0
 ,=7-:=:@23   ,>>,.3@>0??>

  ::H;II E< FH?D9?F7B ;N;9KJ?L; E<<?9;I
 5?F  E:;
#024>?=,9?F> ?070;3:90 9@8-0=  49.7@/492 ,=0, .:/0                
$0.@=4?40> =024>?0=0/ ;@=>@,9? ?: $0.?4:9    -  :1 ?30  .? 
/?JB; E< ;79> 9B7II
 ECCED .JE9A  F7H L7BK;      
/H7:?D= IOC8EB  I

)7C; E< ;79> ;N9>7D=; ED M>?9> H;=?IJ;H;:
);M 4EHA .JE9A  N9>7D=;
66666666666666666666666666666
$0.@=4?40> =024>?0=0/ ;@=>@,9? ?: $0.?4:9    2  :1 ?30  .?   :90 
66666666666666666666666666666
$D:?97J; 8O 9>;9A C7HA ?< J>; H;=?IJH7DJ ?I 7 M;BB ADEMD I;7IED;: ?IIK;H  7I :;<?D;: ?D -KB;     E< J>; .;9KH?J?;I  9J     4;I  
)E  
$D:?97J; 8O 9>;9A C7HA ?< J>; H;=?IJH7DJ ?I DEJ H;GK?H;: JE <?B; H;FEHJI FKHIK7DJ JE .;9J?ED    EH    :  E< J>;  9J     4;I    )E
 • shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 • stockholder letter icon 5/4/2023 BJ Stockholder Letter
 • stockholder letter icon More "Department Stores" Category Stockholder Letters
 • Benford's Law Stocks icon BJ Benford's Law Stock Score = 74


BJ Shareholder/Stockholder Letter Transcript:

2023 Annual Report


Dear fellow shareholders,
Fiscal 2023 was another pivotal year for BJ's Wholesale Club, marked by strong financial results underpinned by
year-long traffic gains in our clubs and gas stations, robust membership and our unwavering focus on delivering
value to our members.
Our four strategic priorities continue to fuel our growth and strengthen the underlying fundamentals of our
business. Through disciplined execution and innovation, we have enhanced our value proposition, membership
engagement and market position this past year.
Improving member loyalty
Membership delivered another milestone year with membership fee income surpassing $400 million for the first
time in our company   s near 40-year history. We achieved 90% tenured renewal rate for the second consecutive
year. Our BJ   s clubs are now serving well over seven million members, having grown membership by about 35%
since our initial public offering in fiscal 2018.
While our strong value proposition has contributed to our growth, we also believe we have gotten better at
acquiring members. We are expanding membership in both new and existing markets, with our digital platforms
becoming a dominant source of that growth. Our intense focus on lifetime value continues to guide our strategies
to elevate member loyalty as well. In fiscal 2023, we launched our new co-brand credit card, offering first-class
rewards and customer service, which creates more loyal members. Higher-tier member penetration, which
includes our credit card tiers, was 38% as of fiscal 2023, up over 13 points from just five years ago. Our
achievements in fiscal 2023, in our view, illustrate our strong and loyal member base that continues to grow,
instilling confidence in the trajectory of our business.
Delivering an unbeatable shopping experience
A great shopping experience keeps our members coming back to shop with us, which deepens their loyalty and
increases their propensity to renew their membership. In the inflationary environment of the last two years, we
have relentlessly focused on delivering compelling pricing every day. In fiscal 2023, our pricing index against our
grocery competitors improved by about 100 basis points, demonstrating our commitment to helping our members
stretch their dollars in a landscape where consumers continue to seek value.
We continue to build our own brands     Wellsley Farms and Berkley Jensen     to provide our members with highquality products and meaningful savings. In fact, our own brands achieved record net sales in fiscal 2023, and
now account for more than a quarter of our business. We are confident in our goal of reaching 30% own brands
sales penetration over time.
Last year, we also began our general merchandise transformation. The treasure hunt experience in general
merchandise is where we believe we can make a profound impact in showcasing value and excitement to our
members, yet it is less than 15% of our business today. We believe we have significant opportunity to profitably
grow this division over the next few years. We are still early in our journey, but I am incredibly pleased with the
progress we have made throughout the year and believe we have the right talent, strategy and focus to drive future
success in general merchandise.
Delivering value conveniently
Digital comparable sales grew 20% in fiscal 2023, comprising 11% of our business. Our digitally enabled sales
have grown seven-fold since fiscal 2018, with more members leveraging our convenience offerings over the past
five years. The club value proposition has never been easier to access due to our efforts in digital and we will
continue to augment our conveniences in areas such as same-day delivery, in-app capabilities and personalization
to deliver even more value to our members.

Growing our footprint
We are strategically growing our presence. In fiscal 2023, we opened eight new clubs and 10 new gas stations and
entered two new states     Tennessee and Alabama. We remain incredibly pleased with the performance of our new
clubs, supported by strong membership. Building on this momentum, we expect to open approximately 12 new
clubs in fiscal 2024. This includes our exciting entry into our 21st state in Kentucky, our continued expansion in
Tennessee, and a couple of relocations. We   re also planning to open about 15 new gas stations. Looking beyond
this year, we   re continuing to build our new club pipeline and currently have more units in the pipeline than at
any time in the last 20 years.
Our strategic priorities firmly align with our commitment to maximizing shareholder value as we maintain our
view that investing in our business remains the best use of our capital. We believe our strong balance sheet grants
us significant financial flexibility as we grow our business and in light of our confidence in such growth, we have
also continued to return cash to you, our shareholders. Over the past five years, we have completed approximately
$625 million of share repurchases, and we expect that share buybacks will remain an important element of our
capital allocation strategy in the future.
Taking care of the families who depend on us
Our team members across our clubs, distribution centers and Club Support Center are unified by a single purpose:
   We take care of the families who depend on us.    Our purpose guides the decisions we make every day as we
look to take care of the members who rely on us for unbeatable value, our team members who rely on us for career
opportunities and the families in our communities who rely on us in times of need. We are particularly proud of
our efforts to nourish our communities. In fiscal 2023, the BJ   s Charitable Foundation made a $1 million grant to
support Feeding America   s mission to end hunger in the U.S. Over the years, we have partnered with Feeding
America and its network of food banks, providing over $8.5 million in grant funding and more than 125 million
meals to local families. Our purpose inspires us to embody the values that we believe will help our communities
continue to thrive for years to come.
Looking ahead
We are excited about the opportunities that lie ahead for our company. We are committed to providing exceptional
experiences for our members, delivering great value and fostering a culture of innovation and excellence across
our organization.
On behalf of our board and executive team, I would like to express my gratitude to our dedicated team members,
whose hard work and commitment to serving our members remain instrumental to our success. I would also like
to thank our members and shareholders for their continued support and confidence in BJ's Wholesale Club.
Sincerely,
Bob Eddy
Chairman and Chief Executive Officer


(,>3492?:9           
66666666666666666666666666666

66666666666666666666666666666
 := ?30 14>.,7 D0,= 09/0/  0-=@,=D        :=

 := ?30 ?=,9>4?4:9 ;0=4:/ 1=:8 +++++++++ ?: +++++++++
 :884>>4:9  470  :          
66666666666666666666666666666
  F$ (    $      &         $      
  C,.? 9,80 :1 =024>?=,9? ,> >;0.4140/ 49 4?> .3,=?0= 
66666666666666666666666666666
 07,B,=0

.J7J; EH EJ>;H @KH?I:?9J?ED E<
?D9EHFEH7J?ED EH EH=7D?P7J?ED

 $ - .   CFBEO;H
$:;DJ?  =4A0
 ,=7-:=:@23   ,>>,.3@>0??>

  ::H;II E< FH?D9?F7B ;N;9KJ?L; E<?=,9?F> ?070;3:90 9@8-0=  49.7@/492 ,=0, .:/0                
$0.@=4?40> =024>?0=0/ ;@=>@,9? ?: $0.?4:9    -  :1 ?30  .? 
/?JB; E< ;79> 9B7II
 ECCED .JE9A  F7H L7BK;      
/H7:?D= IOC8EB  I

)7C; E< ;79> ;N9>7D=; ED M>?9> H;=?IJ;H;:
);M 4EHA .JE9A  N9>7D=;
66666666666666666666666666666
$0.@=4?40> =024>?0=0/ ;@=>@,9? ?: $0.?4:9    2  :1 ?30  .?   :90 
66666666666666666666666666666
$D:?97J; 8O 9>;9A C7HA ?< J>; H;=?IJH7DJ ?I 7 M;BB ADEMD I;7IED;: ?IIK;H  7I :;; .;9KH?J?;I  9J     4;I  
)E  
$D:?97J; 8O 9>;9A C7HA ?< J>; H;=?IJH7DJ ?I DEJ H;GK?H;: JE ;  9J     4;I    )E  



shareholder letter icon 5/9/2024 Letter Continued (Full PDF)
 

BJ Stockholder/Shareholder Letter (BJ's Wholesale Club Holdings, Inc.) | www.StockholderLetter.com
Copyright © 2023 - 2024, All Rights Reserved

Nothing in StockholderLetter.com is intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by BNK Invest Inc. or any of its affiliates, subsidiaries or partners. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. By visiting, using or viewing this site, you agree to the following Full Disclaimer & Terms of Use and Privacy Policy.