BJ’s, Costco Report Weak TV Sales; BJ’s May Put Itself Up For Sale

BJ’s Wholesale Club and Costco on Thursday said TVs were again among their weakest-selling products in January, and Target said electronics sales overall were “soft” in the month without saying how TVs did. BJ’s also said it “decided to explore and evaluate strategic alternatives, including a possible sale” of the company. TVs and pre-recorded video were listed among the weakest-performing products at BJ’s for the four weeks ended Jan. 29 versus the same period last year.

Unit sales of TVs were “about flat” for Costco in the four weeks ended Jan. 30 versus the same period last year, said David Sherwood, director of finance and investor relations, in its monthly prerecorded sales results call. But he said TV revenue was “down in the mid single-digit” percentage “range.” Overall same-store hardlines sales were “negative year-over-year, and in the low single-digit range, primarily due to soft” same-store electronics sales, he said. Sales of audio, cameras and navigation products were also “soft” versus a year ago, Sherwood said. Those results were “partially offset by positive” same-store sales results in wireless phones, he said.

Target’s overall same-store hardlines sales “decreased in the mid single-digit range, with the softest performance in electronics and music, movies and books,” a company spokesman said in that retailer’s monthly prerecorded sales results call.

Word that BJ’s was mulling a potential sale came one month after the company said it was closing five underperforming stores (CED Jan 6 p12). Spokeswoman Kelly McFalls told us Thursday “there were 380 jobs that were eliminated at the five clubs that are now closed,” as well as “114 positions eliminated at Home Office and in the field.” The chain will incur $44 million-$46 million in pre-tax expenses, including $43 million for lease terminations and $2 million for severance, it said last month.

BJ’s said Thursday it had “not made a decision” on any specific alternatives and there’s no guarantee there will be any deal. There’s “no set timetable,” and it won’t “provide updates or make any further comment” unless there’s a specific deal recommended by an independent committee and the BJ’s board, or if “the process is concluded,” it said. Shares rose 12.2 percent to $48.25 in Thursday trading.

Overall January sales at BJ’s grew 6.5 percent from January last year to $779.8 million, it said. Same-store sales inched up 2.7 percent. “Severe snow storms affecting the Northeast and Mid-Atlantic regions” hurt merchandise same-store sales, the company said. Sales in Q4 ended Jan. 29 grew 7.3 percent to $2.9 billion from the year-ago period, with same-store sales up 3.8 percent. Fiscal year sales grew 8.3 percent to $10.6 billion, with same-store sales increasing 4.4 percent. Sales grew in weeks one, three and four of January, but “were flat in week two” due to winter storms, BJ’s said.

Costco’s January sales grew 12 percent from a year ago to $6.3 billion, it said. Same-store sales increased 9 percent, with U.S. same-store sales up 6 percent and international up 16 percent.

Target’s January sales inched up 2.2 percent from a year ago to $4.38 billion, with same-store sales growing 1.7 percent, it said. The same-store sales were “below expectations, particularly in portions of the South and the Northeast,” said CEO Gregg Steinhafel.