BJ's Wholesale Club Reports December Sales.

Business Editors

NATICK, Mass.--(BUSINESS WIRE)--Jan. 10, 2002

BJ's Wholesale Club, Inc. (BJ: NYSE) today reported that sales for December increased by 12.0% to $696.6 million from $622.2 million in December 2000. Comparable club sales increased by 5.8% for the month. Year-to-date, comparable club sales have increased by 3.7%, and total sales have increased by 8.5% to $4.8 billion from $4.4 billion.

Commenting on the results, BJ's president and chief executive officer, Jack Nugent, said, "Comparable club sales results surpassed our expectations due to a surge in sales of seasonal and holiday merchandise during the second half of the month. While we ended the month with our inventories in excellent shape, an unfavorable merchandise mix and aggressive competitive pricing resulted in lower than planned merchandise margins. As a result, we are currently forecasting fourth quarter earnings in the range of $.76 to $.78 per diluted share. This range includes accretion expenses of $.01 per diluted share on the net present value of BJ's reserve for its House2Home lease liability."

                      Sales Results for December
                           ($ in thousands)

      Five Weeks Ended                        % Change
  January 5,    January 6,              Net             Comp.
    2002          2001                 Sales            Sales

 $696,617       $622,237               12.0%             5.8%

 Forty-eight Weeks Ended                       % Change
  January 5,    January 6,              Net             Comp.
    2002          2001                 Sales            Sales

 $4,797,231    $4,419,949               8.5%             3.7%

The Company provided the following additional information on the factors affecting December sales:

By major markets, comparable club sales were strongest in New England and Metropolitan New York. All major markets met or exceeded comparable club sales expectations. The mid-Atlantic and Southeast regions were below the comparable club sales average, primarily due to cannibalization from new BJ's clubs as well as new competition.

Comparable club sales increases were strongest during weeks four and five due to a rapid rise in sales of holiday and seasonal merchandise in week four, and strong sales of both food and general merchandise in week five.

Gasoline sales had a slightly negative impact on comparable club sales in the month of December due to significant gasoline price deflation.

Within the food and consumables category, the Company recorded strong sales of holiday candies, beer & wine, liquor, water, soda, fresh meat, and other consumables including chemicals and paper products. Weaker food categories included frozen hors d'oeuvres, desserts and shrimp, deli platters, eggs and coffee.

General merchandise sales were strong in video game systems, DVD players, pre-recorded movies, TVs, home theatre systems, Christmas merchandise, jewelry, toys, women's apparel, best seller books, health & beauty aids, office supplies, and furniture. Weaker categories of general merchandise included tires, greeting cards, sporting goods and children's apparel.

Membership Renewals

The Company revised its expectations for annual membership renewals from its previous estimate of a 2% decline. Based on eleven months of data, the Company currently expects membership renewal rates for the year to be 87% for Business members and 83% for Inner Circle members. This represents a decrease of approximately 1% compared to all-time high renewal rates of 88% and 84%, respectively, last year.

Fourth Quarter and Year-end Results

BJ's expects comparable club sales for January, the last month of its fiscal year, to increase in the range of 3% to 5%. The Company plans to report January sales on February 7, 2002. Financial results for the fourth quarter and fiscal year ending February 2, 2002 are scheduled to be announced on March 5, 2002.

BJ's introduced the wholesale club concept to New England in 1984, and has since expanded to become a leading warehouse chain in the eastern United States. During the December reporting period, BJ's opened new clubs in Clarence, NY and Freeport, NY. The Company currently operates 130 clubs and 51 gas stations compared with 118 clubs and 32 gas station one year ago. BJ's press releases and filings with the SEC are available on the Internet at www.bjs.com.

Forward-Looking Statements

Any statements about management's future expectations and the Company's plans and prospects, including statements about anticipated levels of sales, future comp sales trends, and any other statements including the words "plans", "expects", and "forecasting" are intended to indicate forward-looking statements for purposes of the SEC's "Safe Harbor" rules. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including those discussed in BJ's annual and quarterly filings with the SEC. In addition, any forward-looking statements represent the Company's estimates only as of the date of this press release and should not be relied upon as representing the Company's estimates as of any later date. While the Company may elect to update its forward-looking statements, the Company specifically disclaims any obligation to do so, even if the Company's estimates change.