‘Many Months’ Before Vaccine Improves ‘Public Health Crisis,’ Says BJ’s CFO
BJ’s Wholesale Club expanded its assortment in Q3 in categories “where we were historically underpenetrated,” including “select consumer electronics” segments, said CEO Lee Delaney on a Thursday investor call. BJ’s timed its Black Friday deals to start earlier in November…
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with “an enhanced focus on relevant categories,” including consumer tech, he said. “We feel great about our holiday assortment.” Online sales grew about 200% from the 2019 quarter, with three-quarters of the growth coming from the buy online, pick up in club offering, he said. “The growth in our digital platforms continues to surpass our expectations.” Online sales through 2020's first nine months were four times higher than in all of 2019, he said. Same-store general merchandise and services sales grew 13% in the quarter, “driven by strong sales of TVs, computer equipment and other home-related categories,” said Chief Financial and Administrative Officer Bob Eddy. He expects in Q4 BJ's will incur up to $35 million in COVID-19 costs, mainly from health, safety and sanitation protocols and staff incentive bonuses. “The current environment remains challenging and unpredictable,” said Eddy. “It remains extremely difficult for us to forecast how the fourth quarter or next year will play out in great specificity.” BJ’s hopes that “with the election behind us,” a new pandemic stimulus package “may have the potential to gain more momentum in Washington,” he said. “While we’ve had some good news in the race for a vaccine, it will most likely take many months to get enough people inoculated to improve the public health crisis.” Delaney has "no doubt" the pandemic is causing customers "to seek out value," he said. "The hope is as we move into the winter months, the public health crisis is more controlled, although that doesn’t seem terribly well aligned with the headlines and where we’re heading."