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Will New Club Openings and First Massachusetts Expansion in 13 Years Change BJ’s (BJ) Narrative?

Simply Wall St · 2d ago
  • BJ’s Wholesale Club has recently opened three new warehouse clubs in Springfield, Massachusetts, Sumter, South Carolina, and Casselberry, Florida, each with on-site gas stations and a full suite of in‑club and digital shopping options.
  • This expansion includes BJ’s first new Massachusetts location in thirteen years, underscoring the company’s renewed push to grow its membership footprint and recurring revenue base.
  • Next, we’ll examine how this latest wave of club openings, especially the long-awaited Massachusetts expansion, affects BJ’s broader investment narrative.

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BJ's Wholesale Club Holdings Investment Narrative Recap

To own BJ’s, you have to believe its membership model and value focus can offset structurally thin margins and slower same store sales growth. The latest club openings support the key near term catalyst of footprint and membership expansion, while also amplifying the main risk that new locations add cost pressure in a competitive warehouse retail market. At this stage, the Springfield, Sumter and Casselberry openings do not materially change that risk reward balance.

The recent Q3 2025 results, where BJ’s delivered US$5,348.16m in revenue and US$1.16 in basic EPS, are a useful backdrop for assessing these new clubs. Solid earnings against cautious guidance highlight how incremental clubs could help membership and fuel driven traffic, but they also sit alongside ongoing concerns about margin pressure from expansion and pricing as BJ’s pursues growth.

Yet behind BJ’s value focused expansion, investors should be aware of the longer term margin pressure risk that...

Read the full narrative on BJ's Wholesale Club Holdings (it's free!)

BJ's Wholesale Club Holdings' narrative projects $25.2 billion revenue and $683.1 million earnings by 2028. This requires 6.5% yearly revenue growth and about a $104 million earnings increase from $578.9 million today.

Uncover how BJ's Wholesale Club Holdings' forecasts yield a $109.26 fair value, a 18% upside to its current price.

Exploring Other Perspectives

BJ 1-Year Stock Price Chart
BJ 1-Year Stock Price Chart

Seven members of the Simply Wall St Community currently see BJ’s fair value between US$89.47 and US$144.70, illustrating wide disagreement on upside. Against that spread, the risk that new club openings raise SG&A costs and weigh on already thin margins is an important lens for thinking about how the business might perform over time, and why it can pay to review several different views before forming your own.

Explore 7 other fair value estimates on BJ's Wholesale Club Holdings - why the stock might be worth just $89.47!

Build Your Own BJ's Wholesale Club Holdings Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.