BJ’s Life-Size Strategy
By George Anderson
BJ’s Wholesale Club is trying out a new tactic for fighting off competition from Costco, Sam’s Clubs and all the other retailers it competes with for consumer dollars.
“The big news from BJ’s,” writes Rick Aristotle Munarriz in a report on the Motley Fool Web site, “is that its new Life-Size merchandise has it playing small ball. Promising convenient smaller-sized options in produce, dairy, meat and baked goods products, BJ’s is no longer just for loading up the bomb shelter to last through the end of the year.”
Mr. Munarriz questions BJ’s Life-Size approach, suggesting it could backfire and cost the club store memberships if consumers perceive it to be simply selling the same items they can buy a more conveniently located grocery stores.
Moderator’s Comment: What are your thoughts on BJ’s Life-Size product sales?
The Life-Size approach could work IF:
- Prices on these items are still substantially lower than consumers would pay elsewhere.
- The club continues to offer the same products in bulk sizes and members who buy larger sizes are rewarded with a lower comparative price based on weight
or units. [George
Anderson – Moderator]