BJ’s Wholesale Club (BJ) Plunges 2.40% on Membership Hikes, Economic Uncertainty, and Tariff Threats

Shares of BJ’s Wholesale Club (BJ) fell to their lowest level since January 2025 on Thursday, with an intraday decline of 2.40%. The stock closed down 0.79%, reflecting ongoing investor concerns over the company’s strategic and operational challenges.

The recent membership fee hikes, which raised basic and premium tiers to $60 and $120 annually, have sparked mixed reactions. While the changes boosted membership revenue by 8.1% year-over-year in Q1 2025, they coincided with weaker consumer spending on discretionary items. CEO Bob Eddy noted that economic uncertainty and inflationary pressures have shifted consumer priorities toward value-driven purchases, squeezing sales in categories like outdoor products and patio sets.

Macroeconomic factors, including the looming threat of higher tariffs under President Trump’s policies, have further complicated BJ’s outlook. Surveys indicate that 56% of consumers anticipate price hikes due to tariffs, with 60% planning to cut spending. BJ’s low-margin model requires balancing inventory costs and member affordability, prompting the company to reduce stock in high-tariff and discretionary categories. The CEO emphasized efforts to source from alternative suppliers and adjust orders to mitigate potential price pressures.

Competitive pressures persist as BJ’s struggles to attract foot traffic. Despite a record 8 million members, Q2 foot traffic growth lagged behind rivals like Costco and Sam’s Club. Declining fuel prices, a key differentiator for BJ’s, have eroded its cost-advantage, while unseasonably cold and wet weather in the Northeast and Mid-Atlantic regions dampened sales in general merchandise. The company’s gas strategy, once a draw for price-sensitive shoppers, has lost traction as national prices dropped to $3.18 per gallon.

Strategic adjustments highlight BJ’s focus on resilience. The company is prioritizing low-income households, which Eddy described as “incredibly loyal” despite economic stress. Inventory reductions in high-risk categories and a renewed emphasis on private-label products aim to align offerings with member needs. However, the mixed earnings results—rising membership revenue but declining core sales—raise questions about the sustainability of its current approach as tariffs and consumer caution persist.