BJ’s May Soup up Gas Stations with Car Washes

Mar 12, 2002

Car washes may be the next product offering from BJ’s Wholesale Club. BJ’s would begin testing car washes in conjunction with the rollout of gas stations at its 100-plus locations, according to a UBS Warburg’s research note. Such a move would make BJ’s the first warehouse club to offer them.

“We believe car washes will enhance the destination aspect of BJ’s clubs and thus drive incremental club traffic, as well as enhance the value of a BJ’s membership,” the research note read in part, adding that car washes would improve operating margins of BJ’s gas stations.

Moderator Comment: Will car washes drive substantial
incremental club traffic for BJ’s?

Most consumers are not going to drive past several other
car washes to go to BJ’s (unless the wash is free) so it doesn’t really appear
to be a means to generate incremental traffic inside the club.

Placing a car wash with a gas station is not revolutionary.
Now if you could have your car gassed up and washed for you while you shop in
the club. That would be customer service. [George
Anderson – Moderator

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