BJ's Wholesale Implements Growth Strategy to Drive More Investments
WESTBOROUGH, MA - This week, BJ’s Wholesale Club announced its fourth quarter and fiscal 2019 results, rounding out its last year of the last decade on a high note. But the grind doesn’t stop—especially if you’re a big-box grocery retailer—and along with its financial report, BJ’s revealed its growth goals for 2020, which includes a cost reduction plan and investment strategy.
“Fiscal 2019 was a solid year, anchored by foundational work to expand our omni-capabilities and to enhance the quality of our membership, which will enable us to deliver growth and continue to transform the company,” said Christopher J. Baldwin, Executive Chairman. “As we look ahead, we are well positioned to build on this foundation and remain confident in the fundamentals of our business and our long-term prospects.”
According to a press release, some highlights from BJ’s report include the following:
- Net sales increased by 1.5 percent for the fourth quarter of fiscal 2019 to $3.4 billion and by 1.3 percent to $12.9 billion for fiscal 2019
- Comparable club sales, excluding gasoline sales, increased by 0.3 percent for the fourth quarter of fiscal 2019 and 1.3 percent for fiscal 2019
- Net income was $187.2 million, or $1.35 per diluted share for fiscal 2019, reflecting 29 percent year-over-year growth
- Adjusted net income was $203.4 million, or $1.46 per diluted share, for fiscal 2019, reflecting 10 percent year-over-year growth
“Our priority is to accelerate growth moving forward. I’m excited about the opportunities ahead and I look forward to executing against our strategic priorities and delivering value to members and shareholders,” said Lee Delaney, President and Chief Executive Officer.
Delany also provided analysts and investors a lowdown of BJ’s cost reduction plan—dubbed Project Momentum—on a conference call earlier this week.
“Our priority is clear. We must grow faster. We’ll do this by investing more aggressively into growth opportunities and accelerating those areas of our transformation that are delivering results. To help fuel our investments, in the fourth quarter, we launched Project Momentum, a cost reduction program that will deliver at least $100 million of savings over the next two years,” Delaney disclosed. “Our investments will be disciplined, growth oriented, and anchored in our strategic pillars to acquire and retain members, deliver value to keep them engaged, make it more convenient, and expand our reach.”
What investments and growth opportunities will arise from BJ’s project momentum? And how will this fuel big-box retail as a whole? AndNowUKnow will continue to keep our eyes on the grocery retail sector.