In a distinctly depressing sign of the times, BJ's Wholesale Club, Inc. (NYSE: BJ) announced today that it will begin accepting food stamps as payment at all 180 of its retail locations. Food-stamp payments will be processed through the Electronic Benefit Transfer (EBT) system.
"BJ's recognizes the diverse financial status and changing needs of its members," commented president and CEO Laura Sen in a statement. "We are proud to help members stretch their food budgets by offering savings on a large selection of fresh fruits, vegetables, meats and baked goods, along with name-brand, non-perishable staples."
BJ's also used its time in the spotlight to note that its members already save up to 30% off supermarket prices.
You can't blame BJ's for trying to lure cost-conscious consumers back into its stores. The chain last week reported a 0.1% slip in March same-store sales, defying analysts' expectations for an increase of 2.3%. As a result of the sales disappointment, BJ has since surrendered its foothold atop its 20-week moving average, which could now resume its usual role as resistance.
Prior to the stock's recent drop, short sellers were heading for the hills. Short interest fell by 20% during the past month as investors rushed to limit losses on their losing bets. However, BJ's turn for the worse could put a halt to this short-covering trend, potentially eliminating a reliable source of buying pressure.
At last check, BJ was down 3.7% amid a down day in the equities market. The stock is currently struggling to hold newfound support at its 10-week moving average and the round-number 30 level.
Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.











Reader Comments (Page 1 of 1)
4-14-2009 @ 3:24PM
Iridium said...
Are you kidding this will probably triple BJ's sales. Welfare crooks get on the average $700 a month to spend on food. Far more than most working families can afford. At the Walmart supercenter by me the majority of food sales are through EBT. I watch the scum of the country fill up three overflowing shopping carts, while good hard working folks can barely afford half a cart.
The EBT system works like a credit card for the scammers and crooks. They buy steaks and crab legs, they don't care because they aren't paying for it.
Just like handicap parking spaces, 90% of food stamps are fraud. The system needs to be eliminated.
5-20-2009 @ 9:57PM
nydiva said...
I would like to know where you get your statistics from. Do you work for BJ's and have access to there financial records or do you spend your day walking from cash register to cash register counting how many people are using an EBT card. My guess is that your just IGNORANT and judging people on something you know nothing about.
Everyone who QUALIFIES for food stamps does not qualify for public assistance. There are hard working people who get ONLY food stamps and it's no where near $700, so don't judge a person as a crook because you are being nosy and stretching your neck to see how everyone in front of you and at the register next to you is paying for their groceries.
The same people who are shopping at BJ's now are the same people who was shopping there before they were accepting food stamps. The only difference is that instead of shopping at BJ's for just the taxable items they can now buy food there also. Trust me those same people were eating steak and crab legs waaay before BJ's was accepting food stamps. If President Obama decided to give welfare (as you call it) to those with jobs, i know you would be the first one on line for your EBT card.
If you spent less money on cigarettes, beer and cat food you could afford steak and crab legs too.
So, i guess these people who lost their homes and jobs are now the scum of the country because they receive public assistance and food stamps. You'll find the real scum of this country in your mirror.
7-06-2009 @ 9:32PM
kim said...
Iridium, what an ignorant and untrue statement you claim! Until this past year, I have always worked full-time. My company down-sized last September and after 15 years on the job, I was laid off. I'd been working there since I was 19 years old! My hard-working husband (bless his heart) who works at the same company has reduced hours now. Our income isn't sufficient enough to feed our 4 children without a little help. We didn't qualify for welfare but we do get FOOD assistance--which is only $280 a month for our family of 6! We are NOT scum! We work hard, own our own home and pay our taxes. The truth is; many people who use foodstamps are NOT welfare (cash assistance) recipients at all!
TANF (temporary assistance for needy families) keeps my children's tummies from being empty. I thank God we don't have to choose between paying the light bill or skipping a few meals anymore. I'm glad B.J.'s decided to open their doors to us hard working American's who are experiencing hard, economic times. Or would you rather look into the big, blue eyes of my four young children and explain how YOU voted to end food assistance programs; therefore they must go to bed/school hungry?
Steak and crab indeed! I get assistance and STILL can't afford that.
Do you think stores should stop taking cash too? I hear drug dealers and the crooked politicians who rob us blind have a penchant for surf and turf.
I bet you didn't know people can even use foodstamps to buy seeds and certain garden items too. I didn't. But I educated myself and this spring, my childen and I planted our first real garden! It's such an awesome sight to see their little fingers planting their garden with such tender care. They feel proud that they are growing the food we will eat all summer--all due to FOOD STAMPS! So embarrassment be damned, nosey shoppers too! We needed a little help and our goverment provided it. When I am employed again, I won't need assistance but I will always remember and RESPECT the time that I did.
Do yourself a favor, read up on the programs and what they entail. Stop going by what you obviously hear because it's not correct information and you look ignorant when you spout "facts" that are nowhere near accurate.
P.S.
Nydiva; your intelligent and witty comment was enjoyed by me. Thanks!