By Daily Mail (U.S.) | Created at 2024-11-22 19:24:08 | Updated at 2024-11-23 02:30:06
7 hours ago
BJ's Wholesale Club is raising its membership fees for the first time since 2018.
The warehouse store chain confirmed in a press release that the price hike would be effective starting January 1, 2025.
The company, a rival to Costco and Sam's Club, revealed its basic plan would increase by $5.
Following the price hike, BJ's Wholesale Store's basic plan would be $60 a year.
The Club+ plan's price will rise by $10, taking it up to $120 a year.
The price hike announcement comes two months after Costco increased its membership fees.
BJ's Wholesale Club's price hike will be implemented before the chain plans to open 20 new locations by the end of 2025.
The company explained that higher prices 'allow the company to invest in an even stronger value proposition.'
BJ's Wholesale Club announced it would hike its membership fees for the first time since 2018
The company has also reached 7.5 million annual members, and that number is still growing, according to the warehouse store chain.
Members of the BJ's Wholesale Club's basic plan have benefits like 25 percent off grocery store prices, same-day delivery and shipping options, free curbside pickup, and low prices at BJ's Gas.
Basic plan holders can also add three supplemental memberships for $30 every year.
Club+ members have the same benefits as those with a basic plan and more.
All Club+ membership holders can receive 2 percent back in rewards on most purchases, 5 cents off per gallon at BJ's Gas, and two to three times more back in rewards during special events.
Club+ members can also earn rewards that will never expire.
Shoppers hoping to purchase a membership at current prices can do so now in-store or on BJ's Wholesale Club's website.
Along with its membership fee hikes, BJ's Wholesale Club announced its 2024 third quarter fiscal results.
All BJ's Wholesale Club members with basic and Club+ memberships will get 25 percent off grocery store prices
The warehouse store chain made $115 million in membership fee income in the third quarter of this year - an increase of 8.4 percent.
'Our third quarter results demonstrate the combination of great value and strong execution. We delivered robust membership growth and hit a milestone of 7.5 million members,' Bob Eddy, Chairman and Chief Executive Officer, BJ's Wholesale Club said in a press release.
'Our value proposition continues to resonate in new and existing markets.'
BJ's Wholesale Club's shares increased rapidly after the company released its results.
The warehouse store chain also opened three new stores and four new gas stations during the third quarter of 2024.
Members of the BJ's Wholesale Club's basic plan have benefits like 25 percent off grocery store prices
Costco also hiked its membership fees in September.
The warehouse-based retailer's standard membership rose by $5 a year, taking it from $60 to $65.
The Executive level - which offers a 2 percent rebate on all Costco purchases made that year up to a total of $750 - increased by $10 to $130 a year.
The changes, which affect members in the US and Canada, represent the first increase in fees since June 2017.
Costco said at the time the rise will hit 52 million memberships, around half of which are the top level.
Many Costco fans had been expecting a rise in rates - since the retailer normally increases fees every six years or sooner.
