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BJ’s pays out $8 million in worker recognition bonuses

CEO Robert Eddy says retailer is responding to tight labor market with investment

Russell Redman

August 20, 2021

4 Min Read
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Onetime bonuses of $300 for full-time and $150 for part-time club and distribution center associates will be paid out in August, BJ's said.BJ's Wholesale Club

This month, BJ’s Wholesale Club is giving club and distribution center workers onetime appreciation bonuses for their continued extra efforts aim the COVID-19 pandemic.

Plans call for recognition bonuses of $300 for full-time and $150 for part-time associates to be paid out in August, BJ’s said yesterday, when it also reported second-quarter earnings. Managers also have received special appreciation payments, but BJ’s didn’t disclose the size of the bonuses.

The Westborough, Mass.-based warehouse club chain said the bonus round totals $8 million and is part of the company’s workforce investment during the pandemic as well as for its expansion efforts.

“Our team members are the key to our success, and I am incredibly proud of their continued dedication to serving our members during these challenging times,” Jeff Desroches, executive vice president and chief operations officer at BJ’s Wholesale Club, said in a statement. “We’re thrilled to recognize and reward our club and distribution center team members with this bonus. By continuing to invest in our team members, we are powering our own growth and acknowledging those that have worked hard to help us accelerate our transformation.”

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BJ's average hourly wage is now well above $15 per hour, according to CEO Robert Eddy.

BJ’s announced its first round of extra pay in late March 2020, just over a week after the United States declared COVID-19 a national emergency. The retailer enacted a temporary wage increase of $2 per hour for all hourly workers in clubs, distribution centers and the home office. Also, managers and key personnel in clubs and distribution centers received one-time bonuses of $500 to $1,000.

Related:BJ’s Wholesale Club builds on prior-year gains in Q2

In a conference call Thursday on quarterly results, BJ’s President and CEO Robert Eddy noted associates’ pivotal role in driving market share gains in the 2021 first half.

“Furthermore, we elevated the value proposition to our team members through meaningful investments in wages and bonuses. Our team members are central to driving our strategy forward, and these investments will help us attract, retain and motivate the best talent and help ensure that they can thrive in our business,” he said.

BJ’s workforce investments also reflect the current tight labor market in the United States, according to Eddy.

“Labor challenges are impacting our industry, like many others. For a long time, we have chased the labor market. Recently, we’ve chosen a different path, a path that calls for a significant investment in our team, backed by our great financial performance to ensure that we get ahead of market forces and better serve our growing membership,” he explained. “Specifically, we have made the largest increases in starting hourly wages in our history. In addition, we awarded our club and distribution center team members this quarter with a onetime recognition bonus for appreciation of their continued hard work and commitment to serving our members. These investments are materially Q2, and we expect these investments to get larger as we go through the year.”

Related:Bob Eddy named CEO of BJ’s Wholesale Club

For the 2021 second half, BJ’s expects to record about $30 million in costs from investments in labor and COVID-related safety and sanitation.

“Our average hourly wage is now well above $15 per hour, and we will continue to invest in our teams so that we can recruit and retain top talent across our footprint,” Eddy said.

BJ’s labor investment also comes amid its continued brick-and-mortar expansion, with the company noting that more associates will be need to staff new clubs.

BJ’s also will continue to steadily expand its brick-and-mortar footprint. One new club was opened in the second quarter, and another five are slated to open in the fourth quarter. The company also is aiming to open 10 or more new clubs in 2022. Currently, the retailer operates 222 clubs and 151 BJ’s Gas stations in 17 states.

“You’re only as strong as your team, and we need the best team on the field every day. Wages are a big component of that. And this year has been an incredibly dynamic labor market for us, as every industry really is suffering some sort of a labor shortage to one degree or another,” Eddy told analysts on the call.

“Continuing to recruit great people and service our members is really what I’m after here, and we will continue to invest in our team going forward,” he added. “As one of my competitors talked about yesterday, I don’t think this is going to change. I think labor pressure will continue. Wage pressure will continue, and we’ll continue to invest to put the best team on the field that we can.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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