BJ’s: Small Packages Driving Better Margins

Smaller packages of premium grocery items are driving margin improvements at BJ’s Wholesale Club, its chief financial officer said Tuesday.

NEW YORK — Smaller packages of premium grocery items are driving margin improvements at BJ’s Wholesale Club, its chief financial officer said Tuesday.

Speaking at the Barclay’s Capital Retail and Restaurant Conference here, Frank Forward of BJ’s said the “trade-up strategy” was particularly effective on items like milk, eggs and butter. For example, he said a package of 18 eggs drove better sales and margins than the typical “club pack” of 24 eggs.

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TAGS: Marketing Meat