What CEOs Are Saying: Discount Retailers

Three earnings calls from last week: TJX, Ross Stores, and BJ's Wholesale Club

In This Edition

• Deflation? In this economy?
• Gen Z eyes off-price retailers
• Locked-in fuel contracts pay off
• Ross steps to the upmarket
• BJ’s rides the gas spike

Quotes of the Week

“In April alone, our members spent $143 million more at our pumps than they did a year ago.”
—Bob Eddy, Chairman and CEO of BJ’s Wholesale Club

"[Our] only real growth is from the affluent customers." —Bob Eddy

Since the war with Iran shut the Strait of Hormuz in late February, the price of oil has been the central fact of the American economy. (Though relief may be on the way?) The national average for gasoline hit $4.55 a gallon on Friday, up more than half since the fighting started and the most expensive pre-holiday fill-up since 2022.

This week the shock reaches the checkout line. Three large discount retailers each held earnings calls this week, and the spike at the pump is affect each of them in significant but different ways. There are also some interesting views in these three on which strata of the…