BJ’s Wholesale Club has announced an increase in its annual membership fees for the first time since 2018. The basic plan will now cost $60 per year, up by $5, while the Club+ tier will rise to $120, a $10 increase. These new rates will come into effect on January 1, 2025.
The company stated that the price hike will allow them to invest in providing even more value to their 7.5 million members and to continue growing their member base. This move comes after a successful earnings period for BJ’s, which saw a 3.8% increase in same-store sales, excluding gasoline, leading to a 5% jump in their stock price during premarket trading.
Membership fees are a significant source of revenue for BJ’s, helping them to balance expenses and keep prices competitive. In the past year, income from memberships increased by 8.4% to $115 million, driven by strong acquisition and retention rates, as well as higher tier membership penetration across their clubs.
This fee increase puts BJ’s in line with Costco, which raised its prices by $5 in September for many of its plans. On the other hand, Sam’s Club last raised its fees in 2022. BJ’s, headquartered in Westborough, Massachusetts, has around 215 locations primarily on the East Coast and in Michigan. While the company has fewer stores compared to its competitors, it offers a wide variety of items.
As the company continues to grow and invest in its value proposition, members can expect to see enhancements and improvements to their shopping experience. Subscribe to our newsletter to stay updated on the latest news and developments in the retail industry.
