BJ's to Shut Pharmacies, ProFoods

NATICK, Mass. -- BJ‘s Wholesale Club here said yesterday it would close all 46 of its in-store pharmacies, as well as its two ProFoods restaurant supply stores, as part of a restructuring under interim Chief Executive Officer Herb Zarkin. Citing “self-inflicted” struggles for sales and membership growth, Zarkin said BJ‘s would reduce SKU selection, sharpen pricing, curb new club growth, and improve marketing and merchandising. The announcements, which also included the return of former executives Laura Sen, named executive vice president of merchandising and logistics, and Ed Gillooly, senior vice president of marketing and membership, came after BJ‘s said tepid sales of general merchandise and winter gear slowed comparable sales in December to 0.6%, including a 1% gain from gasoline sales. Charges related to closure costs, as well as the effect of lower-than-expected sales, will result in quarterly earnings of 17- 25 cents a share, down from previous estimates of 83-87 cents per share, the retailer said.