BJ’s Wholesale, one of the top three warehouse clubs in the U.S., continues to see cautious consumer behavior in its stores. With heightened competition from Costco, Walmart’s Sam’s Club and other rivals, BJ’s is doubling down on a bold strategy to attract more customers.
In the fourth quarter of 2025, BJ’s saw its comparable club sales (excluding gas sales) increase by 2.6% year over year, while its operating income decreased by 0.2%, according to its latest earnings report.
Its sales performance during the quarter lagged behind top rivals Costco and Sam’s Club. Excluding gas sales, Costco’s U.S. comparable sales rose by 5.9% year over year, while Sam’s Club’s spiked by 4% during that time period.
During an earnings call on March 5, BJ’s Wholesale CEO Bob Eddy said that the company “navigated a dynamic environment marked by a more cautious, value-seeking consumer, tariff-related and geopolitical uncertainties, and broader macroeconomic volatility” throughout 2025.
“Value remains foundational to how we serve our members, and we continue to see that resonate across all income levels, particularly in a period where many consumers are becoming more selective with their spending,” said Eddy.
While sales in grocery, perishables, consumer electronics and apparel increased during the fourth quarter after launching deals, BJ’s saw declining sales in its home and seasonal categories.
“We had a tougher quarter in our home and our seasonal businesses,” said Eddy. “Those were more subject to tariffs. That’s where much of our inventory cuts happened.”
The persistent trend of shoppers being more cautious about their spending comes amid economic pressures, such as higher prices from tariffs, which have led to low consumer sentiment. Many Americans have been cutting back their spending in key areas as their finances worsen, according to a recent survey from EY-Parthenon.
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Approximately 1 in 4 U.S. consumers felt worse off financially in December than they did the month before.
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About 70% flagged feeling moderate or major concern about the elevated cost of living, particularly around groceries.
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The top three areas where consumers are cutting spending are travel, restaurants and entertainment.
Source: EY-Parthenon
Consumers will continue to be value-conscious and selective “well into 2026,” which will “continue to shape the competitive landscape for retailers and brands,” warned Will Auchincloss, EY-Parthenon Americas retail sector leader, in a press release.
