BJ’s Wholesale has teamed up with DoorDash to offer on-demand grocery delivery from the warehouse club’s 226 locations in 17 states.
Through this partnership, Westborough, Mass.-based BJ’s becomes the first wholesale club available on DoorDash, according to a release. It allows customers to order groceries and home essentials on-demand. BJ’s members can also link their loyalty card to orders to receive lower, member-only pricing.
U.S. consumer interest in online grocery continues to be strong; the total U.S. market generated $8.7 billion in sales in February—a gain of 8.5% over the same period the year prior, according to a recent Brick Meets Click/Mercatus’ Grocery Shopping Survey.
And while pickup remains the most popular aspect of that, delivery continues to grow, the survey showed. Delivery through both first- and third-party providers reported a year-over-year increase of 37%, to capture 37% of online shopping spending—slightly less than pickup’s 47%—or $3.2 billion in sales.
“We see the trend towards convenience only going in one direction, with grocery delivery being no exception,” said Shanna Preve, VP of business development for San Francisco-based DoorDash.
Through the partnership, BJ’s members will be able to order same-day deliveries through DoorDash Drive. Members can also receive discounts for the first two weeks of the alliance: Between March 29 and April 12, BJ’s customers who use DoorDash will receive 30% off orders of $100 or more (with a maximum discount of $40), valid on just one transaction.
BJ’s 226 locations are also available on DashPass, DoorDash’s membership program that charges no delivery fees for members, on eligible orders totaling $25 or more.
“We are excited to expand easy shopping solutions for our members, while also bringing BJ’s wide assortment and exclusive products to new potential members,” said Monica Schwartz, EVP and chief digital officer of BJ’s Wholesale Club.
Some of BJ’s shopping solutions are currently under a microscope after Bentonville, Ark.-based Walmart filed suit against BJ's early last week through its patent-holding subsidiaries, Sam's West Inc. and Walmart Apollo LLC, alleging that BJ’s has stolen technology that Walmart Inc. developed, Business Insider and other media outlets reported.
These innovations include Walmart’s Scan & Go capability, which Sam's Club initially began featuring on its mobile app in 2016. Walmart alleges that BJ’s Express Pay, introduced in late 2021, “is strikingly similar” and offers “nearly identical functionality," Walmart's legal team wrote in the lawsuit.
"Express Pay is an apparent copy of Sam's Club's Scan & Go, merely changing the in-app colors and changing the name from Scan & Go to Express Pay,” the lawsuit claims.
BJ's has not yet filed any motions in the case, Business Insider reported.