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BJ's Wholesale same-store sales top estimates

NEW YORK
Thu Jun 5, 2008 12:26pm EDT

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NEW YORK (Reuters) - BJ's Wholesale Club Inc (BJ.N) said on Thursday that May sales at stores open at least a year jumped 13.4 percent, beating analysts' estimates, on strong demand for gasoline and food.

Analysts on average were expecting a same-store sales gain of 8.9 percent, according to Thomson Reuters data.

The company, the No. 3 U.S. warehouse club operator, said roughly half of the increase came from a rise in gasoline sales.

Customers pay an annual fee to shop in BJ's warehouse locations to get discounts on everything from digital cameras and fresh food to bulk-sized packages of paper towels and soda. The clubs also sell gasoline, which attracts shoppers looking to fill their tanks with cheap fuel.

Total sales for the four weeks ended May 31 rose to $824.3 million from $711 million a year earlier.

BJ's said sales of food rose 11 percent, driven by strong sales of perishable items.

Categories with the strongest sales included candy, bakery goods, meat, frozen goods, produce and pet food, the company said. Weaker departments included air conditioners, clothing, summer seasonal goods and televisions.

The company, which operates 178 stores in 16 states, blamed the decline in summer goods on cooler weather and increased rainfall.

(Reporting by Martinne Geller; Editing by Lisa Von Ahn)



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