BJ's adds same-day delivery subscription as membership perk

Dive Brief:

BJ’s Wholesale Club said Wednesday it has rolled out a same-day delivery subscription option as an add-on to its membership program.
Same-Day Select offers shoppers two different delivery packages: 12 no-fee deliveries during a one-year period for $55 or unlimited no-fee deliveries for a year for $100. Orders must be $60 or more to qualify for the service.
The news comes on the heels of BJ’s listing on DoorDash’s marketplace, highlighting the push for more same-day service options as well as retailers’ efforts to own customer loyalty in e-commerce.

Dive Insight:

BJ’s is looking to boost the value of its membership through a new delivery subscription offering that further expands its lineup of online purchasing options.

Same-Day Select, which BJ’s said it successfully tested over the past six months, offers delivery in as little as two hours to members who sign up. The program includes in-store pricing and lets members rack up rewards as well as use digital coupons.

Delivery subscriptions have become increasingly popular with grocery chains looking to secure e-commerce loyalty among shoppers. In addition to BJ’s, Albertsons, Kroger and Walmart all have memberships that offer unlimited no-fee deliveries. Kroger’s Boost membership program, like BJ’s Same-Day Select, offers two payment tiers — unlimited no-fee delivery within 24 hours for $59 annually, and unlimited two-hour delivery for $99.

Like other retailers, BJ’s is also trying to boost e-commerce loyalty to its brand while extending its reach through e-commerce marketplaces. Listing on DoorDash’s marketplace opens BJ’s selection up to members as well as non-members that use the popular delivery company’s platform. Members are eligible for lower prices, which could entice those who aren’t members to sign up for a BJ’s membership.

The partnership underscores how e-commerce companies like DoorDash are using deals like this to boost their marketplaces while simultaneously offering a service to retailers. Members of DoorDash’s Dashpass program get no-fee delivery on orders that are $25 and over. DoorDash is also providing white-label delivery through its DoorDash Drive program.

BJ’s is looking to boost its membership ranks as well as the amount of money each member spends. The company has seen club membership increase 15% over the past two years, while membership fee income rose 8% in fiscal 2021, to $361 million, executives said during the company’s most recent earnings call in March.