BJ's: Four Ways to Improve Operational Efficiencies

BJ's outlines four ways it is improving operational efficiencies in its most recent financial quarter. According to Laura Sen, President and Chief Operating Officer of BJ's, the retailer is committed to the following:

1. BJ's continues to build proficiency in its processes for ordering and replenishing perishable foods. Presentations have improved significantly and BJ's has reduced shrink and salvage, resulting in better freshness for its members every day.

2. The loss prevention team achieves a substantial savings in shrink reserves during the first half through the implementation of new processes and procedures. BJ's already has one of the lowest shrink levels in retail, less than 25 basis points of net sales, and the company's loss prevention team achieved similar results in last year's first half.

3. The company improves operational efficiencies in distribution by completing the implementation of a new warehouse management system in its Jacksonville, Florida distribution center. The new system, which is now fully operational at all three distribution centers, helps the company accelerate inventory flow to the clubs and gives better visibility of inventory.

4. BJ's transitioned to a new data center provider with a selection of Witpro Technologies as its business processing partner. The relationship will allow BJ's to leverage Witpro's global infrastructure management experience and IT best practices.

Total sales in the company's fiscal second quarter decreases 5.2 percent to $2.51 billion, compared to $2.64 billion last year. However, BJ's remains focused on chain expansion, which Sen says is key to the company's growth strategy. BJ's plans to open as many as seven new clubs this year.
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