realestate

BJ's Wholesale Tests Real Estate: Grocery Stores & Car Washes

BJ's Wholesale runs ~250 Eastern U.S. warehouse clubs and is testing new ventures like grocery stores and car washes.

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J’s Wholesale operates roughly 250 membership‑only warehouse clubs across 21 states, mainly on the East Coast and Midwest, competing with Costco and Sam’s Club. Each club averages about 100,000 square feet and carries fresh produce, household essentials, select appliances, apparel and seasonal items. In recent years the chain has begun testing new business lines and real‑estate concepts.

    In 2022 BJ’s converted a 43,000‑square‑foot former Toys R Us in Rhode Island into its first “small‑format” grocery outlet, branded BJ’s Market. The store is less than half the size of a typical BJ’s club but offers the same bulk pack sizes and pricing, along with deli, produce, bakery, product demos and sample stations. Executives describe it as an “innovation lab” that gives members a convenient, neighborhood shopping option. A second BJ’s Market is slated for later this year in a 53,000‑square‑foot Winn‑Dixie location in Delray Beach, Florida.

    BJ’s is also expanding its real‑estate footprint beyond clubs. Gas stations already operate at about three‑quarters of its clubs. More recently the company filed plans to build a 4,800‑square‑foot car‑wash facility at its Southington, Connecticut club, complete with a mechanical room, office space and two covered pay stations. Details on pricing, membership exclusivity or subscription models remain undisclosed. While a car‑wash is a new venture for BJ’s, Sam’s Club runs over 40 such sites and Costco has 15 across five states; Costco has hinted at adding car‑wash services in some future developments but not universally.

    Beyond groceries and car washes, BJ’s may explore additional services. The chain once operated in‑club pharmacies until 2007, while Costco and Sam’s Club have expanded theirs. The recent Rite Aid bankruptcy has opened a sizable pharmacy market share, and retailers like Pittsburgh‑based Giant Eagle are filling former Rite Aid locations with pharmacy services. BJ’s has not publicly signaled a return to the pharmacy space, but the grocery‑store and car‑wash experiments suggest it is testing new ways to enhance member value.

    In short, BJ’s Wholesale is diversifying its club experience through small‑format grocery outlets, car‑wash development, and potentially other services such as pharmacies, all aimed at delivering added convenience and value to its membership base.

BJ's Wholesale explores grocery store and car wash real estate opportunities.