Whoever thought competing against Sam's Club and Costco would be easy? BJ's Wholesale Club once did and is now learning otherwise:

Just over two years ago, executives at BJ's Wholesale Club Inc. were talking about taking the company on a nationwide expansion trip, setting up stores slowly but surely from sea to sea over the next decade.

Now, company officials instead speak of improving the BJ's already in business and refocusing on its East Coast foothold.

That's what happens after retail competition intensifies, shoppers bargain hunt, profits fall, stock prices plunge and upbeat earnings outlooks turn into grim forecasts.

BJ's is still struggling to figure out who it wants to sell to and what makes them different. The problem is summed up in this insightful quote:

"It seems that, unfortunately, the most success in retail is from proactive strategies, rather than reactive," said Michael Tesler, president of Retail Concepts in Norwell. "And this feels like a reactive strategy."