BJ Wholesale Club : Investor Presentation March 2024

March 2024

BJ's Wholesale Club

Investor Presentation

Forward-Looking Statements:

This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward looking statements, including, without limitation, statements regarding our strategic priorities; our anticipated fiscal 2023 outlook; our anticipated long-term financial outlook, and our future progress, as well as statements that include the words "expect," "intend," "plan," "believe," "project," "forecast," "estimate," "may," "should," "anticipate" and similar statements of a future or forward-looking nature. These forward-looking statements are based on management's current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: uncertainties in the financial markets including, without limitation, as a result of disruptions and instability in the banking and financial services industries or as a result of wars and global political conflicts; consumer and small business spending patterns and debt levels; our dependence on having a large and loyal membership; domestic and international economic conditions, including continued high inflation rates or further increases in inflation rates or interest rates, supply chain disruptions, construction delays; our ability to procure the merchandise we sell at the best possible prices; the effects of competition and regulation; our dependence on vendors to supply us with quality merchandise at the right time and at the right price; breaches of security or privacy of member or business information; conditions affecting the acquisition, development, ownership or use of real estate; our capital spending; actions of vendors; our ability to attract and retain a qualified management team and other team members; costs associated with employees (generally including health care costs), energy and certain commodities, geopolitical conditions (including tariffs); changes in our product mix or in our revenues from gasoline sales; our failure to successfully maintain a relevant omnichannel experience for our members; risks related to our growth strategy to open new clubs; risks related to our e-commerce business; our ability to grow our BJ's OneTM Mastercard® program; and other important factors discussed under the caption "Risk Factors" in our Form 10-K filed with the U.S. Securities and Exchange Commission ("SEC") on March 16, 2023 and in subsequent Form 10-Q's filed with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Any such forward-looking statements represent management's estimates as of the date of this presentation. While we may elect to update such forward-looking statements at some point in the future, unless required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this presentation.

Industry Information:

Market data and industry information used throughout this presentation are based on management's knowledge of the industry and the good faith estimates of management. We also relied, to the extent available, upon management's review of independent industry surveys and publications and other publicly available information prepared by a number of third-party sources. Although we believe that these sources are reliable, we cannot guarantee the accuracy or completeness of this information, and we have not independently verified this information. All of the market data and industry information used in this presentation involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. While we believe the estimated market position, market opportunity and market size information included in this presentation are generally reliable, such information, which is derived in part from management's estimates and beliefs, is inherently uncertain and imprecise. Projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in our estimates and beliefs and in the estimates prepared by independent parties.

Non-GAAP Financial Measures:

We present adjusted EBITDA, adjusted EPS, free cash flow, and Net Debt to LTM adjusted EBITDA to help us describe our operating performance. Our presentation of these measures is intended as a supplemental measure of our performance that is not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). Adjusted EBITDA, free cash flow, and adjusted EBITDA margin should not be considered as an alternative to operating income (loss), net income (loss), earnings per share or any other performance measures derived in accordance with U.S. GAAP as measures of operating performance or operating cash flows or as measures of liquidity. Our presentation of adjusted EBITDA, free cash flow, and adjusted EBITDA margin should not be construed to imply that our future results will be unaffected by these items. A reconciliation of these non-GAAP financial measures to the most comparable GAAP financial measures are included in the Appendix to this presentation.

2

Q4 FY23 highlights: Strong year underpinned by membership, traffic and market share growth

A stronger company today, built on our strategic priorities	Q4 FY23 results4

Improve member loyalty

7M+

Members +6% vs. Q4 FY22

$108.4 M

MFI1 +6.5% vs. Q4 FY22

90%

Tenured renewal rate2

38% Higher-tier penetration Flat vs. Q4 FY22

Co-brand partnership with Capital One enhances value proposition

Unbeatable	Deliver
member	value
experience	conveniently

Focus on value continues to resonate in current environment demonstrated by traffic and market share gains

+28%

Digitally-enabled comparable sales growth

90%

Digital sales fulfilled in-club

25.5%

Own brand penetration2

Grow our footprint

Opened 8 new clubs and 10 new gas stations in FY23

Expanded into 2 new states in FY23, with presence in 20 states to date

Currently operates 244 clubs and 175 gas stations

$5.2B

Net sales +8.7% vs. Q4 FY22

+0.5%

Comparable club sales ex. the impact of gasoline vs. Q4 FY22

(40bps)

Merchandise gross margin rate vs. Q4 FY22

$290.7M

Adjusted EBITDA3 +8.9% vs. Q4 FY22

$1.11

Adjusted EPS3 +11.0% vs. Q4 FY22

	Strong balance sheet and free cash	• Capital allocation priority remains investing in the business
	•	Net debt to LTM adjusted EBITDA3 of 0.6x
	flow provide strategic flexibility	•	Returned ~$130M to shareholders via share repurchases (FY23)

1. Membership fee income
2. As of FY23. Stats reported annually
3. Refer to Appendix section
4. Net sales and net income for the 53rd week were approximately $353.4 million and $13.4 million, respectively

$155.2M

Free cash flow3

3

Key investment highlights

Advantaged

business model in a favorable market backdrop

Loyal membership

base that is

growing in size and

quality

Differentiated

shopping

experience focused

on fresh, value

and convenience

Accelerated

expansion of

highly profitable

club base

Prudent capital

allocation strategy

maximizes

shareholder value

4

The warehouse club model offers significant structural advantages

Operate efficiently

• Limited SKUs support pallet presentation, driving scale and inventory turns
• Requires less labor in club
• Efficient distribution
• Lower per square foot build-out costs

Constantly reinvest into value

• ~25% better prices than grocery1
• ~10x return on annual membership fee
• Compelling promotions and awards
• Fuel and services (tires, optical, etc.)

Earn member loyalty, stability and data

• 90% tenured renewal rate
• Membership fee drives spend consolidation and strong annuity
• Provides comprehensive data on members

5

1 25% savings based on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. For additional information, refer to our Form 10-K filed with the SEC on March 16, 2023

The warehouse club channel is growing and taking share

U.S. warehouse club market size1

($ in B)

$108

$113

$113

$121

$132

$141

$147

$151

$152

$155

$165

$176

$183

$204

$236

$269

$278

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Accelerated share gains in recent years with opportunity for future growth1

U.S. sales growth by channel	2023 share of
(2018 - 2023 CAGR)	U.S. retail sales

9.5%

4.8%

6.7%

5.7%

3.6%

U.S. warehouse club market

Warehouse Total retail Grocery	GAFO 2
club

1	Source: HHC Publishing - 2023 Warehouse Club Focus; U.S. Census Bureau data (seasonally adjusted)	6
2	GAFO represents stores that specialize in merchandise including furniture & home furnishings, electronics & appliances, computers, clothing & accessories, sporting goods, hobby, book, music, general merchandise, and office supplies

MFI has grown every year for over 25 years

($ in M)					$421
					$397
					$361
					$333
					$302
					$283
$229	$242	$243	$247	$255	$259

$56 $66

$79 $90

$106 $118 $124

$139 $150 $159

$210

$173 $175 $180 $191

	FY97	FY98	FY99	FY00	FY01	FY02	FY03	FY04	FY05	FY06	FY07	FY08	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23
Store	84	96	107	118	130	140	150	157	165	172	177	180	187	189	195	198	201	207	213	214	215	216	217	221	226	235	243
count
Renewal	81%	81%	83%	84% 82%	83%	84%	83%	83% 82% 82% 83%	83%	83%	82%	84%	83%	83% 84%	85%	86%	87%	87%	88%	89%	90%	90%
rate1
					MEMBERSHIP FEE		MEMBERSHIP FEE		MEMBERSHIP FEE		MEMBERSHIP FEE
						INCREASE				INCREASE				INCREASE				INCREASE

1 Represents tenured renewal rate which is reported annually

7

BJ's go-to-market strategy is differentiated

vs. Club		vs. Grocery

vs. Mass channel

Broader assortment

Smaller pack sizes

Smaller club format

Convenient locations

Full-service deli

~25% lower prices1

Treasure hunt

Services & fuel

Price below mass channel break-even

Larger pack sizes

8

1 25% savings based on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. For additional information, refer to our Form 10-K filed with the SEC on March 16, 2023

We strive to deliver a great member experience grounded in value

How members save at BJ's

Lower prices

Fresh food and deli assortment can fulfill weekly grocery shopping needs

Quality own brand products

Digital app allows for convenient shopping and coupon usage

Low-priced fuel and services

Illustrative member savings1

~10x

Return on

membership

fee

EDLP savings

Coupons

Own brands

Gas savings

Higher-tier membership rewards

Attractive credit card rewards

1 Estimate of average annual member savings. Assumes Every Day Low Price ("EDLP") savings versus traditional grocery

9

Our goal is to deliver convenience to our members

1

Digitally-enabled sales

BOPIC1 / Curbside pickup

Same-day delivery ("SDD")

Ship-to-home,

Express Pay, other2

23

In-club conveniences	Targeted messaging and
Price scan	retail media program

In-club coupons

Deli pre-ordering

1	Buy online, pick up in club	10
2	All other digital offering e.g. services