BJ’s Wholesale is seeing a domino effect from the economic pressure that has boosted its gas business in recent months.
However, its retail business continues to face challenges as demand grows unevenly. In response, the company is planning major changes to stores that could affect how customers shop.
In the first quarter of 2026, BJ’s comparable club sales increased 6.3% year over year, which includes gasoline sales, the company’s latest earnings report revealed. Gas was the main driver of this growth; Without it, comparable club sales increased just 1.5% year over year.
Data from a recent Placer.ai report revealed that visits to BJ’s gas stations, which offer discounted fuel, gradually increased over the past two months as gas prices rose. For example, during the week of March 9, visits to BJ gas stations increased 17.2% year over year, and during the week of April 6, visits increased a whopping 21.7%.
Gas prices began to inflate following the attack by the United States and Israel on Iran in late February. Currently, gas prices nationwide average about $4.52 per gallon, according to recent data from the American Automobile Association (AAA). A month ago, the average price of gasoline was $4.03 per gallon.
In the report, Placer.ai content writer Ezra Carmel wrote that “competitively priced fuel is a major driver of traffic during periods of high gas prices, reinforcing the value proposition of warehouse club memberships.”
“If fuel prices remain high, members may be more inclined to consolidate shopping trips around fill-ups, which could increase both traffic at the pump and spending at the club,” he added.
BJ’s plans are significant move as customer base changes
During an earnings call on May 22, BJ’s Wholesale CEO Bob Eddy said that in April alone, members spent $143 million more at the company’s gas stations than a year ago.
“Gas prices increased dramatically during the quarter, putting additional pressure on members’ wallets,” Eddy said. “By the end of the first quarter, retail gas prices had increased almost 50% compared to the beginning of the quarter. In that environment, our role was clear: to help take care of our members by offering value.”
Despite this growth in gas sales, Eddy cautioned that club members continue to reduce spending in discretionary categories, as sales growth in these areas remained stable during the quarter.
Related: BJ’s Wholesale Makes Bold Move to Attract More Shoppers
“While the broader consumer has been resilient in the face of continued challenges, we continue to see a more pressured environment for low-income households,” he said.
Eddy said “the vast majority” of BJ’s comparable sales growth during the quarter was driven by higher-income members “staying engaged” and consistently shopping in stores.
In response to high spending by higher-income members, Eddy said BJ’s plans to introduce more higher-priced items to its locations to ensure it has “the right assortment for people who spend.”
“We want to elevate our assortment a little in the good, better and better version,” he said. “We have too much at the good level and we need more and better.”
“We’ve seen a resilient consumer, but if we look under the covers, there’s considerable pressure on low-income consumers, and middle-income consumers are trading a little bit sideways, and the only real growth is coming from wealthy customers,” he added. “We want to make sure we’re where the money is and offering the right products to those people.”
BJ’s Wholesale plans to introduce higher-priced products to stores.Photo by Bloomberg from Getty Images
BJ promises to return savings to customers
Despite this upcoming change in stores, Eddy said BJ’s will also double down on returning fee refunds to members through pricing as they remain under financial pressure.
This is a change the company initiated during the first quarter, causing a deflation of approximately 0.5 points in its retail prices. The move comes after it implemented price increases at its stores last year due to tariffs.
Two areas where BJ’s is considering using these funds to lower prices are gasoline (if demand drops) and eggs, as inflation remains high.
More retail:
“Any source of profit we come up with, we will always try to give back to our members so they can reward us in the future,” Eddy said.
It’s vital that BJ’s continues to invest in cash-strapped members as more consumers across the country are taking extra steps to save money.
According to a recent survey from A&M Consumer and Retail Group, this includes shoppers switching brands and giving more of their business to retailers that offer lower prices.
How American consumers are saving money on food:
Barely 61% of consumers are doing less trips to the supermarket to reduce costs.
Also, 50% to 60% are switch to lower priced retailers looking for more affordable prices.
Besides, 35% plans to buy less expensive brands in stores amid financial pressures. Source: A&M Retail and Consumer Group
Chad Lusk, CEO of A&M Consumer and Retail Group, said in a news release that “consumers are reorienting the importance of brand in their decision making and loyalty is declining.”
As BJ’s plans to adjust pricing and assortment in stores, it expects comparable club sales, excluding gasoline sales, to increase 2% to 3% year over year in fiscal 2026.
“We’ve factored everything we know today into our outlook,” Laura Felice, BJ’s wholesale chief financial officer, said during the earnings conference call. “We are certainly looking at the continually changing tariff environment.”
Related: Publix faces consumer boycott threat after store policy change
This story was originally published by TheStreet on May 25, 2026, where it first appeared in the Retail section. Add TheStreet as a preferred source by clicking here.
