BJ’s Stock Falls on Eve of Analysts’ Meeting

BJ’s Stock Falls on Eve of Analysts’ Meeting

Oct 16, 2007 8:00 AM

NATICK, Mass. — The stock of BJ’s Wholesale Club here fell about 4% yesterday after an analyst downgraded the company, citing slowing traffic at the chain. Bank of America Securities downgraded BJ’s to “sell,” from “neutral,” according to reports, a day ahead of today’s scheduled analysts’ meeting, at which the company is expected to introduce its new management team and outline its merchandising strategies going forward. BJ’s stock closed at $35.91, down $1.53.

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BJ's Veteran named to new post

BJ's Veteran named to new post Boston Business Journal - August 30, 2007

Ahead of the Bell: BJ's Wholesale Club

Aug. 22, 2007, 8:13AM
Ahead of the Bell: BJ's Wholesale Club

© 2007 The Associated Press

NEW YORK — A JPMorgan analyst on Wednesday reiterated his "Overweight" rating on BJ's Wholesale Club Inc. and said the warehouse-club operator's turnaround efforts were on track.

BJ's Wholesale Club Inc. on Tuesday said net income rose 37 percent, ahead of analyst expectations, helped by strong sales of perishable foods. The news sent its shares up 3 percent on Tuesday.

Analyst Charles Grom said in a note to investors on Wednesday that initiatives begun by Chief Executive Herb Zarkin, who took the post in November, appear to be paying off. The overall number of products on shelves, or stock keeping units, and the number of private label brands have been reduced, Grom said.

Among other things, Zarkin has sought to cut the number of brands and sizes BJ's carries to open up shelf space for additional product lines.

"It appears that the turnaround effort at BJ's remains on track (if not ahead of plan)," Grom wrote.

BJ's Sees 37 Percent Profit Jump in Q2; Launches BJ's Visa Card

BJ's Sees 37 Percent Profit Jump in Q2; Launches BJ's Visa Card AUGUST 22, 2007 -- NATICK, Mass. -- Warehouse club operator BJ's Wholesale Club, Inc. yesterday posted a 37 percent increase in profit for the second quarter, citing strong sales of perishable foods like cheese and produce. Its net income was $36.3 million, compared to $26.4 million in the second quarter of 2006. Separately, the company announced a new partnership with Barclays to launch the BJ's Visa Card, which will be accepted as a customer's BJ's Membership Card. Results for the second quarter of 2007 included income of $2.4 million post-tax from the disposition of a lease on one of the two ProFoods Restaurant Supply locations closed by the company in January 2007, as well as income of $3.6 million post-tax from favorable income tax audit settlements. Total sales for the second quarter jumped 8.0 percent to $2.25 billion, compared with $2.08 billion for the second quarter of 2006. Comparable club sales increased by 3.7 percent for the latest period, including a contribution from sales of gasoline of 0.7 percent and a detriment from lack of pharmacy sales vs. last year worth approximately 0.4 percent. BJ's said its new Visa Card will offer cardholders the following perks: -- Two points for every dollar spent on eligible BJ's purchases -- One point for every dollar spent on all other purchases -- 1,000 bonus points after their initial purchase -- For every 2,000 points accumulated, the cardholder automatically will receive with their monthly statement a $20 BJ's Bucks check, which can be used for BJ's purchases -- The option to use their BJ's Visa Card as their BJ's Membership Card -- Fast checkout with Visa payWave, Visa's contactless technology Via Visa payWave technology, consumers will be able to pay for purchases by waving their contactless-enabled card within two inches of a secure card reader. "Members shop at BJ's Wholesale Clubs for the quality products, selection, convenience, and overall value that a BJ's Membership brings to their lives, and we wanted to deliver that same brand experience with our BJ's Visa Card," said Ed Gillooly, e.v.p., chief marketing officer, BJ's Wholesale Club, in a statement. Barclays said it plans to issue a business credit card for BJ's business members beginning in January 2008. BJ's operates 175 BJ's Wholesale Clubs in 16 states.

Links referenced within this article

Find this article at: http://www.progressivegrocer.com/progressivegrocer/headlines/article_display.jsp?vnu_content_id=1003628883

Even With 'Continued Strength in Food,' BJ's Sees Lower July Comps

Even With 'Continued Strength in Food,' BJ's Sees Lower July Comps AUGUST 10, 2007 -- NATICK, Mass. -- Spurred by solid sales of bakery, cheese, dairy, frozen, meat, and produce items, BJ's Wholesale Club, Inc. yesterday posted July 2007 sales of $650.5 million, a 6.0 percent increase from July 2006's $613.9 million. July comparable-club sales rose 1.5 percent, including a negative impact of 0.6 percent from gasoline sales and a negative impact of 0.4 percent from the absence of pharmacy sales vs. last year. Last year the retailer reported a July comparable-club sales rise of 1.9 percent, including a 1.1 percent contribution from gas sales. Comparable-club food sales for the month increased about 5 percent, particularly in the perishables categories noted above. A dip in general merchandise of about 1 percent reflected a considerable decline in air conditioners sales compared with last year, in addition to a decrease furniture and toy sales, partially offset by strong sales of books (particularly the recently released "Harry Potter and the Deathly Hallows"), televisions and video game hardware. For the second quarter ended Aug. 4, 2007, total sales grew 8.2 percent, to $2.25 billion and comparable-club sales went up 3.7 percent, including a 0.7 percent contribution from gas sales and a negative effect from the absence of pharmacy sales vs. last year of 0.4 percent. For the year-ago period BJ's posted a total sales increase of 5.7 percent and comparable-club sales growth of 1.8 percent, including a 1.9 percent contribution from gas sales. "There were a number of factors impacting July comparable-club sales results, which decelerated from the 4 percent and 5 percent increases we reported in May and June," explained BJ's chairman, president and c.e.o. Herb Zarkin in a statement. "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 signups was July 9. And finally, gasoline had a negative impact of approximately 0.6 percent in July, vs. a contribution of approximately 1 percent 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." As for the second quarter, "comparable-club sales results were consistent with our guidance and showed positive momentum from the first quarter," noted Zarkin "Comparable-club sales of food increased by approximately 5 percent, and general merchandise sales increased by approximately 0.5 percent." For the 26-week period ended Aug. 4, 2007, total sales rose 7.4 percent and comparable-club sales grew 3.0 percent, including a 1.1 percent contribution from gas sales and a negative impact from the absence of pharmacy sales vs. last year of 0.4 percent. By region, the highest sales increases were in Metro New York and the Mid-Atlantic. Sales went down in the Southeast region, which, according to the company has been experiencing a higher level of competition and self-cannibalization than locations in other parts of the country. BJ's operates 175 BJ's clubs in 16 states.

Workers picket BJ's construction site

UNION: We were left out of biddingCOMPANY REP: Process was fair

Workers picket BJ's construction site

Posted by the Asbury Park Press on 08/9/07

BY MATT PAIS
MANAHAWKIN BUREAU

Post Comment

STAFFORD — They've been fighting the heat and humidity of the dog days of August for weeks, and say they won't let up until their voices are heard.

A collection of union workers are making their displeasure at the site of a future BJ's Wholesale Club known on a daily basis, picketing the job site at the corner of Martin Truex Jr. Boulevard and McKinley Avenue.

Members of carpenters union local 2018 and electrical workers local 400 claim they were unfairly excluded from the bidding to work on the project that will bring the first wholesale club to southern Ocean County.

"This contractor is non-union, and he doesn't pay area standard wages or health care," said Seymour Kahn, business agent for the carpenters union.

Kahn said he organized the picket as a way for union members to voice their displeasure with being excluded from taking part in the latest in a series of commercial developments along the McKinley Avenue corridor.

"This is a standard informational picket. We are the public, and we want the public to know (this job) is non-union," he said.

Julie Somers, a spokeswoman for BJ's Wholesale, said the company does not conduct the bidding process for construction. That job is left to the independent contractor hired to do the work.

She declined to identify the contractor being used in Stafford, as did workers at the job site.

"We hire these contractors because they have a proven track record. They execute quality work in a timely, cost-effective manner. They are looking for people who do the same," Somers said.

Somers disputes Kahn's claim that union workers were excluded from bidding.

"The bidding process is a competitive one. The contractor for Manahawkin did in fact include union labor in the bidding process," she said. "BJ's does not have a preference as to whether it's union or non-union labor. In a competitive marketplace, we want our contractors to choose the best labor for the job."

Kahn, however, disputes that claim, and says the union-standard price tag of $54.13 an hour including benefits was too pricey for the national chain.

"The bottom line is money," he said. "BJ's says it was competitive and (awarded to) the lowest bid. We're just making the statement that we were never given an opportunity."

Matt Pais: (609) 978-4582 or mpais@app.com

BJ's success documented everywhere

Keeping Up with the Big Boys

Articles, Analysts, and Executives continue to brag about how well BJ's Wholesale Club is doing...

I believe rising gas and food prices will play to BJ's strengths. It is able to offer these at discounts to traditional grocers and gas stations. Doing this increases store traffic, and customers also may spend more on other items, like big-screen televisions. This could in turn increase margins, which is one ingredient the company is missing today.

Are you seeing a change at your job? Don't let the company continue to take advantage of you while they only reap the benefits. Stand up for your hard work. Contact us if you've had enough of being treated like this.

Sales rise $80 Million...do you deserve more?

BJ's Wholesale Club June Comp Sales Up 5.3%....Are you seeing any of this profit???

BJ's Wholesale Club (BJ) said June same-store sales rose 5.3% from a year earlier, including a contribution from sales of gasoline of 1.4% and a negative impact of 0.4% from the absence of pharmacy sales.

Analysts polled by Thomson Financial had expected, on average, a 3.3% same- store sales rise.

Total sales rose 9.8% to $886.8 million from $807.3 million a year ago.

BJ's Wholesale Club sales rose nearly $80 Million dollars from a year ago... Have things in your working environment changed from a year ago? Is BJ's giving Health Care to all employees now? Are you getting all the hours that you were promised? Did you get that raise you were promised??? With all the leg work you do for BJ's Wholesale Club you'd think they would show some appreciation sometime.

http://www.wtopnews.com/index.php?nid=111&sid=1147047

BJ's Wholesale 1Q Profit Declines

May 22, 2007 - 10:14am

By MARK JEWELL
AP Business Writer

BOSTON (AP) - BJ's Wholesale Club Inc.'s profit fell 11 percent in the first full quarter since a leadership change returned Herb Zarkin to the retail warehouse club's top job.

Despite the lower profit, Zarkin said he expects his efforts to revamp merchandise and pricing at Natick-based BJ's to yield improved earnings by late this year.

Net income for the three-month period ended May 5 declined to $13.7 million, or 21 cents per share, from $15.4 million, or 23 cents per share, a year ago.

The latest quarter included income of a penny per share from the sale of pharmacy assets following Zarkin's Jan. 4 announcement of plans to close 46 unprofitable in-store pharmacies.

Not counting one-time gains and expenses, the latest quarter's profit would have totaled 20 cents, compared with 22 cents previously, matching the consensus estimate of analysts surveyed by Thomson Financial.

Revenue, including membership fees, grew to $2.06 billion from $1.91 billion last year. Net sales rose 8 percent to $2.01 billion from $1.87 billion a year earlier, as sales at clubs open at least a year increased 2.3 percent, including a contribution from gasoline sales of 1.4 percent.

Shares of BJ's rose $1.09 cents, or 3.1 percent, in morning trading Tuesday to $36.60.

Although the first-quarter profit fell 11 percent, the performance was an improvement from the fourth quarter, when net income plunged 77 percent following slow sales heading into the holiday shopping season _ a trend that led to the abrupt resignation of Mike Wedge on Nov. 22, when Zarkin was named interim chief executive. On March 1, BJ's named Zarkin president and CEO on a permanent basis, and he stayed on as board chairman.

Zarkin told analysts in a conference call that he was "encouraged by the early signs" from his steps to turn around the company, and expects to see the efforts yield profit gains starting late this year.

"We feel we made considerable progress in the first quarter," said Zarkin, despite poor April weather in the Northeast that hurt sales.

Among other things, Zarkin plans to cut the number of brands and sizes BJ's carries to open up shelf space for additional product lines. He also plans to eliminate certain BJ's-branded private label items, offer more competitive pricing, and refocus marketing and merchandise presentation.

BJ's, with more than 20,000 employees, operates 173 warehouse clubs in 16 states, stretching from Maine to Florida, with the heaviest concentration in the Northeast. BJ's is dwarfed by larger rivals Costco Wholesale Corp. and Wal-Mart Inc.'s Sam's Club.

From 1993 to 1997, Zarkin was president and CEO of Waban Inc., which then operated BJ's and well as HomeBase, another warehouse club.

(Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

By MARK JEWELL
AP Business Writer

BOSTON (AP) - BJ's Wholesale Club Inc.'s profit fell 11 percent in the first full quarter since a leadership change returned Herb Zarkin to the retail warehouse club's top job.

Despite the lower profit, Zarkin said he expects his efforts to revamp merchandise and pricing at Natick-based BJ's to yield improved earnings by late this year.

Net income for the three-month period ended May 5 declined to $13.7 million, or 21 cents per share, from $15.4 million, or 23 cents per share, a year ago.

The latest quarter included income of a penny per share from the sale of pharmacy assets following Zarkin's Jan. 4 announcement of plans to close 46 unprofitable in-store pharmacies.

Not counting one-time gains and expenses, the latest quarter's profit would have totaled 20 cents, compared with 22 cents previously, matching the consensus estimate of analysts surveyed by Thomson Financial.

Revenue, including membership fees, grew to $2.06 billion from $1.91 billion last year. Net sales rose 8 percent to $2.01 billion from $1.87 billion a year earlier, as sales at clubs open at least a year increased 2.3 percent, including a contribution from gasoline sales of 1.4 percent.

Shares of BJ's rose $1.09 cents, or 3.1 percent, in morning trading Tuesday to $36.60.

Although the first-quarter profit fell 11 percent, the performance was an improvement from the fourth quarter, when net income plunged 77 percent following slow sales heading into the holiday shopping season _ a trend that led to the abrupt resignation of Mike Wedge on Nov. 22, when Zarkin was named interim chief executive. On March 1, BJ's named Zarkin president and CEO on a permanent basis, and he stayed on as board chairman.

Zarkin told analysts in a conference call that he was "encouraged by the early signs" from his steps to turn around the company, and expects to see the efforts yield profit gains starting late this year.

"We feel we made considerable progress in the first quarter," said Zarkin, despite poor April weather in the Northeast that hurt sales.

Among other things, Zarkin plans to cut the number of brands and sizes BJ's carries to open up shelf space for additional product lines. He also plans to eliminate certain BJ's-branded private label items, offer more competitive pricing, and refocus marketing and merchandise presentation.

BJ's, with more than 20,000 employees, operates 173 warehouse clubs in 16 states, stretching from Maine to Florida, with the heaviest concentration in the Northeast. BJ's is dwarfed by larger rivals Costco Wholesale Corp. and Wal-Mart Inc.'s Sam's Club.

From 1993 to 1997, Zarkin was president and CEO of Waban Inc., which then operated BJ's and well as HomeBase, another warehouse club.

(Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Rumors at Club 138

Typical BJ's situations at BJ's Club 138. Workers continue to tell us how the situation is worsening...

• Constant harrasment by male managers.
• Absolutley no respect toward team members
• One member calls the situation "disturbing" and says they "have absolutley no idea what's going to happen when they get to work"
  

The situation is growing worse and we're here to help, we'll be contacting our lead members there to let everyone know when the next meeting is. BJ's can't get away with this.

BJ's and Privacy

Here are a few articles on BJ's Wholesale Club and their privacy problems...These articles are from 2005.
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http://informationweek.com/story/showArticle.jhtml?articleID=164900859

The Federal Trade Commission's recent announcement of a proposed settlement with BJ's Wholesale Club is just the latest privacy-enforcement action to send the message that application security matters--a lot.

The FTC's complaint against BJ's gives new clarity to the line between reasonable and unreasonable security practices. Some of the criticized practices fall in the network-security, access-controls, and incident-response categories: insufficient measures to detect unauthorized access and conduct security investigations, insecure wireless network access, and use of commonly known default user IDs and passwords. But other practices listed in the complaint fall squarely in the category of application controls to protect sensitive information, such as failure to encrypt sensitive information while in transit or in network storage and unduly long data retention.

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Press Release on the agreement

Massachusetts: Hunger seen a growing problem in area and BJ's isn't helping

This article comes from the Sun Chronicle, highlighting hunger problems throughout Massachusetts. It notes that wealthy retailers like BJ's Wholesale Club aren't doing much to solve the problem, we think they should stop charging membership fees and start accepting food stamps.

Hunger seen a growing problem in area

BY JIM HAND SUN CHRONICLE STAFF
Friday, April 13, 2007 1:14 AM EDT

U.S. Rep. James McGovern speaks to the Community Coalition of Greater Attleboro Thursday morning at the Attleboro Arts Museum. (Staff photo by KEITH NORDSTROM)

ATTLEBORO - Hunger in the Attleboro area has grown beyond the poor and is now common among working class families, social service providers and U.S. Rep. James McGovern said Thursday.

They said more families than ever are utilizing free food pantries because they cannot make ends meet due to the high cost of food, housing, gasoline, health care and heating fuel.

"There are a lot of hungry people right here," McGovern, D-Worcester, told a breakfast meeting of the Area Community Coalition of Greater Attleboro.

He said hunger in America goes beyond the stereotype of the poor, homeless person and is now found in working class families and the elderly.

Hospital emergency rooms are treating more elderly patients who have damaged their stomachs by taking medication without eating because they cannot afford both medicine and food, McGovern said.

Janice Godfrey of the Rehoboth Council on Aging said she volunteers at a charity food pantry on Easter Sundays.

Last year she sat around eating jelly beans because so few people took advantage of the pantry on Easter.

This year, she said, so many people came for free food that "I never worked so hard."

She said a big problem is the rising price of milk. A gallon has hit $4 in some stores and is expected to keep rising throughout the year.

McGovern said it might sound odd, but obesity can be related to hunger.

He said poor families give their children soda and junk food because they cannot afford milk and fresh vegetables.

The congressman said there is some help available, but Massachusetts has one of the lowest rates for applying for food stamps in the country.

He said he supports a proposal to provide a breakfast to school children at their desk first thing in the morning and another to extend school lunch programs for the poor throughout the summer.

Mary Ellen Goodwin of Beta Community Services proposed another way of helping hungry families.

She said the debit cards the food stamp program gives to families are not accepted at some discount stores, such as BJ's Wholesale Club.

If the cards were accepted by the discount stores, poor families could save $1 on every gallon of milk and get other food for less to make their food stamp allotment stretch farther, she said.

The meeting touched on a variety of issues affecting social services.

Speakers said workers have not received raises in years, affordable housing is disappearing in the Attleboro area and a federal fuel assistance program is inadequate.

A few speakers said the United States could afford to take care of its needy citizens if it was not spending so much money on the war in Iraq.

McGovern said that since Democrats took over Congress, there has been a renewed emphasis on the poor and next year will increase funding for many social services.

Later, he explained that to pay for the extra spending on social services, other areas of the budget will have to be cut, or tax decreases passed years ago will be allowed to expire.

The budget resolution passed by the House rejected President Bush's proposal to cut food stamps by 280,000 families and home meals for 500,000 senior citizens.

It also increases funding for agriculture programs that support nutrition by $20 billion, according to McGovern's Washington office.

What a Great Response!

Thanks to everyone who has been posting and visiting the site, last week we promoted the site so much and it looks like its paying off. We'll be scheduling more meetings this week we've also put up a poll, so go vote! Thanks again and remember to shoot us an email at BJSBLOG@aol.com.

Things stirring up in Queens....

We've been meeting with tons of workers from the BJ's Queens locations, most workers are begining to bring us more and more unsatisfied workers from BJ's. We know most workers are still scared to post on the blog but leave us some comments on how you think our campaign is going or how you think we can improve it...We love hearing from everyone and are looking forward to hearing and seeing everyone at our next meeting in Queens!

BJ’s Wholesale Elects Zarkin President and CEO

NATICK, Mass. — Herb Zarkin has been elected president and chief executive officer of BJ’s Wholesale Club, the company said yesterday. He had served as interim CEO since November 2006 and will continue as chairman of the company’s board of directors. Zarkin has served as a director since November 1996 and as chairman since 1997. From 1993 to 1997, he was president, CEO and a director at Waban Inc., which operated BJ’s Wholesale Club as well as HomeBase, another warehouse merchandising business. Tom Shields, BJ’s presiding director, said, “The board’s decision is a vote of confidence in Herb’s ability to lead the company. He has done an outstanding job as CEO in recent months, and we are confident that his continued leadership will benefit all BJ’s stakeholders.”

CNN Uncovers E-COLI at BJ'S

(Taken From CNN.com)

BJ's recalls mushrooms on E. coli suspicion

Warehouse club operator pulls items from shelves after routine testing finds possible presence of deadly bacteria.

February 20 2007: 7:30 PM EST

NEW YORK (CNNMoney.com) -- BJ's Wholesale Club, Inc. said Tuesday it was recalling packages of fresh mushrooms after it a routine inspection revealed the possible presence of the deadly bacteria E. coli.

The warehouse club operator said the products affected were Wellsley Farms brand fresh mushrooms purchased between February 11 and February 19, 2007.

Video More video Simple safety steps can help prevent one of the most serious food borne illnesses. CNN's Judy Fortin reports (February 2) Play video

The company, which had not received any reports of illness, said it had removed all the potentially affected products from its shelves as a precaution.

Customers who had purchased the product are encouraged not to eat it and may return the unused portion for a full refund.

If tests by BJ's confirms the presence of E. coli, it would mark the third food outbreak of the bacteria in the U.S. over the past seven months.

More than 70 people fell sick in December last year because of an E. coli outbreak linked to Taco Bell restaurants in the U.S. Northeast. Federal health officials said contaminated lettuce was the likely cause.

In September, the Food and Drug Administration had linked the infection of 158 people with a strain of E. coli to spinach manufactured by the three companies. The death of at least one child was linked to the outbreak.

Consumers who have further questions may contact BJ's toll free Member Care line at 1-800-BJS-CLUB.

BJ (Charts) shares finished 1.3 percent higher in Tuesday trade on the New York Stock Exchange.

---

BJ's recalls mushrooms on E. coli suspicion

BJ's recalls mushrooms on E. coli suspicion

(Taken From The Marler Blog)

According to CNN Money: Warehouse club operator pulls items from shelves after routine testing

BJ's Wholesale Club, Inc. said Tuesday it was recalling packages of fresh mushrooms after it a routine inspection revealed the possible presence of the deadly bacteria E. coli. The warehouse club operator said the products affected were Wellsley Farms brand fresh mushrooms purchased between February 11 and February 19, 2007. The company, which had not received any reports of illness, said it had removed all the potentially affected products from its shelves as a precaution.

Tags: Case News, coli BJ's, e.

BJ's out Home Depot in

The city is allowing Home Depot to build a 135,000 square foot store in the Throgs Neck section of the Bronx. There was no major outcry from citizens, politicians, labor activists, religious, or community leaders. Why, When a year ago all of these groups came out against a proposed BJ's Wholesale Club? Well, first and foremost as Councilmember Annabel Palma said, "Home Depot is accustomed to paying a living wage". The implication that BJ's does not is deafening. This decision really reflects the importance that corporate responsibility is taking in the decisions that the city and the citizens make about their neighborhood. BJ's is notorious for not paying their employees a living wage. Finally, people from all sectors of the populace are standing up and saying that if, as company policy, you treat your employees poorly, if you do not provide benefits, and you do not recognize their right to organize a union, then you are not welcome in our neighborhood. We see this trend happening all over the place, like Staten Island keeping Wal-Mart from building stores, to the rally at Albee Square in Brooklyn last week, where Wal-Mart again was blocked from opening a store. Maybe BJ's will learn from this rebuff (most likely not) and begin to treat their workers with respect. We understand that it is now time to make work pay. By denying BJ's expansion into the Bronx, it lets them know that they will not be able to make money in New York City without recognizing their employees right to MAKE WORK PAY.

Discontent in Middle Village...Workers Not Happy

We're hearing rumblings again... Workers in Middle Village are not happy. Constant complaints over cut hours, and even workers being repremanded for asking about the sale of the company... For the abundant amount of complaints and response we continue to get in Middle Village we know that we're on the right path for bringing help to BJ's Workers. With the support of former BJ's employees we have a message for BJ's workers in Middle Village: "Help is On the Way!"

BJ's Flyer

We've been getting a lot of emails requesting to put the flyer up on the site...We're in the process of creating a new one but feel free to print these out at your homes!

BJ's Wholesale Club: Buyout Rumors Still Buzzing

Taken from the Motley Fool: http://www.fool.com/investing/general/2007/01/09/bjs-wholesale-club-buyout-rumors-still-buzzing.aspx

BJ's Wholesale Club (NYSE: BJ) has been a popular target for buyout rumors. And with good reason, since the company has the kind of things that private equity firms look for: strong cash flows, minimal long-term debt, and valuable assets, such as its real estate holdings.

Well, last week, investors got more information to trade on. In fact, the last few months have been busy for the company. So let's see how the events might affect a potential buyout.

Perhaps the most encouraging piece of information was the resignation of the CEO in November (yes, investors can be harsh). Basically, the board is open to new approaches, which likely means evaluating a buyout transaction.

Interestingly enough, BJ's continued its management shakeup last week. Laura Sen is the company's new executive vice president of merchandising and logistics, whereas Ed Gillooly has been appointed the senior vice president of marketing and membership. The company's CFO, Frank Forward, has also agreed to stay with the company for another three years.

Next, the company is still showing weakness in sales. In December, same-store sales were a measly 0.06%. Moreover, the forecast is 1% to 3% growth in January.

So how does this play into the buyout analysis? It means that the company will need to take some tough actions, which may be more easily done as a private company.

We're not finished yet. BJ's is going to shut down two ProFoods Restaurant Supply locations, as well as 46 in-club pharmacies. As a result, there will be a restructuring charge of $0.42 to $0.48 per share. This means a fourth-quarter earnings forecast of $0.17 to $0.25 per share.

There's no doubt that BJ's needs to find ways to compete effectively against its much larger and more powerful competitors, Wal-Mart (NYSE: WMT) and Costco (Nasdaq: COST). For example, the company is looking to price merchandise more aggressively, as well as improve the merchandising mix. And these recent changes may provide new ideas to do so.

Might these changes scare away potential buyers? I don't think they will. Private equity firms have bought a variety of smaller retailers, such as The Sports Authority, Good Guys, and Brookstone. Even Toys R Us was able to do a buyout despite the intense competition from Wal-Mart.

So even with the recent operational and management changes, the rumors should not go away. However, betting on a buyout can be particularly dangerous for Foolish investors. If anything, management may want some time to restructure the company before selling out.

Further Foolishness:

• Costco's Sales Delight
• BJ's in a Funk: Fool by Numbers
• BJ's: Not a Bargain Yet

BJ's Wholesale Club upgraded to "buy"

NEW YORK, January 16 (newratings.com) - In a research note published yesterday, analysts at FTN Midwest upgrade BJ's Wholesale Club Inc (BJ.NYS) from "neutral" to "buy."

What is next for our company???

Rumors concerning the sale of BJ's

We hear rumors everyday about the sale of BJ's, but TheStreet.com contributor Scott Rothbort has an interesting articles discussing 5 business hookup we might see. He gives reasons why the deals make sense and also reasons why they my not happen. Link

1. Sears Holdings (Nasdaq: SHLD) to buy BJ's Wholesale Club (NYSE: BJ)
2. Morgan Stanley (NYSE: MS) to acquire Legg Mason (NYSE: LM) orT Rowe Price (Nasdaq: TROW)
3. Hewlett-Packard (NYSE: HPQ) to acquire Palm (Nasdaq: PALM)
4. General Electric (NYSE: GE) to acquire Alcoa (NYSE: AA)
5. Boeing (NYSE: BA) to merger with Ford (NYSE: F)

Heres what Scott Rothbort had to say about BJ's....
All too often, the media and investors merely speculate about potential takeovers and start rumors. I, on the other hand, prefer to contemplate what would make a nice corporate match in a Yenta the Matchmaker-type way.

Here is my list of five mergers and acquisitions that make sense to me -- with the reasons why, and the reasons why they might not happen:

1. Sears Holdings (SHLD - commentary - Cramer's Take - Rating) to acquire warehouse retailer BJ's Wholesale Club (BJ - commentary - Cramer's Take - Rating).

Why it makes sense: Sears still has underperforming stories -- or Kmart-Sears stores that are cannabilizing one another -- and it's in the process of transforming them into new concepts or selling off their real estate. BJ is dwarfed by Costco (COST - commentary - Cramer's Take - Rating). Sears can buy BJ and expand BJ, utilizing those superfluous Kmart-and-Sears stores to capture more of the fast-growing warehouse business from Costco and Wal-Mart's (WMT - commentary - Cramer's Take - Rating) Sam's Club. Currently, BJ's market cap is just under $2 billion. Sears has the cash and stock currency to easily pay a 20% premium to BJ shareholders and still make an accretive acquisition.

Why it might not happen: Sears' Eddie Lampert is focused on improving the merchandising in existing Sears stores and continues to experiment with new concepts such as in the Gwinnett Place Mall.

Analysts: "There's a very legitimate case for it being sold -- they're not big enough to compete with the Sam's and Costcos,"

BJ's Getting Out of Pharmacy Biz

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By George Anderson

BJ's Wholesale Club has decided to close all of its pharmacies.

The decision to get out of the pharmacy business was made, according to interim CEO Herb Zarkin, for a number of reasons. These included the company getting into pharmacy at a later stage (2002) than its primary competitors and not having conveniently located stores (46 of BJ's 171 stores have a pharmacy) to make it easier for consumers to pick up their prescription medicines.

"We haven't seen the [prescriptions] grow on a regular basis," Zarkin said. "It just didn't make a lot of sense for us to keep on putting the investment in."

BJ's has also felt the effect of increased price competition, which started when Wal-Mart began pricing some older generics at $4, as well as dealing with reduced reimbursement rates from Medicare.

The announcement BJ's is shuttering its pharmacies is likely to increase speculation of a company sale.

"There's a very legitimate case for it being sold -- they're not big enough to compete with the Sam's and Costcos," David Strasser, an analyst with Bank of America Securities, told the Boston Globe.

A BJ's spokeswoman said the company would not comment on the decision to disband the pharmacy. But in a conference call with investors last week, interim CEO Herb Zarkin said BJ's prescription business wasn't growing.

"It just didn't make a lot of sense for us to keep putting the investment in," he said.

Zarkin replaced Michael Wedge, the architect of BJ's plan to build pharmaceutical sales by offering a variety of medications at prices up to 20 percent lower than drug stores.

BJ's also entered the e-commerce fray in December, allowing nonmembers to shop online for such goods as plasma televisions and electronics. BJ's publicized the effort by offering a 41-carat diamond necklace, priced at $250,000.

But jewelry sales failed to dazzle in the fourth quarter, which Zarkin attributed to poor staff training.

"You just can't put a body there," he said. "You have to train them."

BJ's operates 171 stores in 17 states, 46 of them with pharmacies. In addition to Deptford and Voorhees, the retailer also operates stores in Maple Shade, Mays Landing and Vineland. We don't know what's exactly in store for BJ's, but we do know that the workers should keep their eyes and ears open for anything, this is a very trying time for BJ's Wholesale Club...

BJ's Wholesale Club to public: Expect Changes

BJ'S Wholesale Club has been all over the news lately, nationally and internationally... Here are many of their miscues from last week alone that you the workers may not be aware about... New interim CEO Herb Zarkin said yesterday that the company lost market share to both Kroger and Wal-Mart "by not offering the right products at the right price." If the prescription drug business had anything to do with that, then the picture could get worse for BJ's in 2007... "The situation is a mess..." said one manager when asked about the pharmacies being cut and the future "simply I just don't know what is going to happen..." Keep coming back to find out more on this "mess" of a situation BJ's is in.

BJ's Wholesale Cuts Profit Outlook
Houston Chronicle - Houston,TX,USA
BOSTON — BJ's Wholesale Club Inc. on Thursday cut its profit forecast amid sluggish sales and said it will close 46 in-store pharmacies and two restaurant ...

BJ's Wholesale cuts profit outlook, will ...
Boston Online - BOSTON -- BJ's Wholesale Club Inc. on Thursday cut its profit forecast amid sluggish sales and said it will close 46 in-store pharmacies and two restaurant supply locations, moves announced less than two months after the ...

Warehouse club BJ's Wholesale cuts profit outlook, will close 46 ...
BOSTON: BJ's Wholesale Club Inc. on Thursday cut its profit forecast amid sluggish sales and said it will close 46 in-store pharmacies and two restaurant ...

Sector Snap: Big Box Retailers
Houston Chronicle - Houston,TX,USA
NEW YORK — Shares of BJ's Wholesale Club Inc. sank Thursday under slow same-store sales in December, but other big box retailers got a boost from an ...

BJ's Wholesale Club makes management shifts
Worcester Business Journal - Worcester,MA,USA
Forward was part of the original team that formed BJ's Wholesale Club as a development stage business in 1984. Forward previously served as executive vice ...

BJ's Wholesale Club will attempt to regroup - Orlando Sentinel
BJ's Wholesale Club Inc., the third-largest US warehouse retailer, ... Warehouse club BJ's Wholesale cuts profit outlook, will close 46 … International Herald Tribune BJ’s Wholesale Club Reports December Sales Results; Announces … ...

BJ's Wholesale, on the rebound again...

Kroger and Wal-Mart beat up on BJ's Wholesale

BJ's Wholesale(NYSE:BJ), the nation's third-largest wholesale store chain behind leaders Costco Wholesale Corp. (NASDAQ:COST) and Sam's Club, has not had anything enlightening to say in prior quarters. It continues to lose sales to competitor Wal-Mart, Inc. (NYSE:WMT),which runs Sam's Clubs, and to even the nation's largest retail (not wholesale) grocery retailer Kroger (NYSE:K).

BJ's Wholesale even cut its profit forecast after lower-than-expected holiday sales were announced. The company will be closing 46 in-store pharmacies and two restaurant-supply locations. 46 pharmacies, you say? Has the recent move by Wal-Mart into the prescription drug "discount bin" pricing approach that was just launched in the last calendar quarter of 2006 had anything to do with this move by BJ's Wholesale?

In response to Wal-Mart's move into the $4 prescription drug business, both competitors Target Corporation (NYSE:TGT) and Kroger said they would respond with the same pricing in an effort to not lose customers to Wal-Mart. But retail drug chains like CVS (NYSE:CVS) and Walgreens (NYSE:WAG) did not follow suit (nor could they).

BJ's interim CEO Herb Zarkin said yesterday that the company lost market share to both Kroger and Wal-Mart "by not offering the right products at the right price." If the prescription drug business had anything to do with that, then the picture could get worse for BJ's in 2007.

BJ’s to Shut Pharmacies, ProFoods

BJ’s to Shut Pharmacies, ProFoods

January 5th, 2007

NATICK, Mass. — BJ’s Wholesale Club here said yesterday it would close all 46 of its in-store pharmacies, as well as its two ProFoods restaurant supply stores, as part of a restructuring under interim Chief Executive Officer Herb Zarkin. Citing “self-inflicted” struggles for sales and membership growth, Zarkin said BJ’s would reduce SKU selection, sharpen pricing, curb new club growth, and improve marketing and merchandising. The announcements, which also included the return of former executives Laura Sen, named executive vice president of merchandising and logistics, and Ed Gillooly, senior vice president of marketing and membership, came after BJ’s said tepid sales of general merchandise and winter gear slowed comparable sales in December to 0.6%, including a 1% gain from gasoline sales. Charges related to closure costs, as well as the effect of lower-than-expected sales, will result in quarterly earnings of 17- 25 cents a share, down from previous estimates of 83-87 cents per share, the retailer said.

Did your store let you know??? What other changes will the interim CEO Herb Zarkin make??!? This is an important time for BJ's Workers to come together and stand up for their rights.