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.

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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

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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.