SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

Exhibit 10.1

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT is made and entered into to be effective as of the 9th day of August, 2004, by and between Herbert J Zarkin of One Mercer Road, Natick, Massachusetts 02649 (“Executive”) and BJ’s Wholesale Club, Inc., a Delaware corporation, the principal office of which is in Natick, Massachusetts (the “Company”).

W I T N E S S E T H:

WHEREAS, the Company and Executive are parties to that certain Employment Agreement dated July 28, 1997, and amended as of September 14, 2000 (the “Existing Employment Agreement”); and

WHEREAS, the Company and Executive desire to amend certain provisions of the Existing Employment Agreement hereby;

NOW, THEREFORE, in consideration of the mutual promises and covenants hereinafter set forth, the sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, do hereby amend and modify the Existing Employment Agreement as follows:

“(b) Extent of Services. Executive shall devote all of the time he spends working and his attention and his best efforts to the performance of his duties and responsibilities under this Agreement to the Company. Nothing in this Section 2(b) shall prohibit the Executive from (i) serving in any capacity with charitable or not-for-profit enterprises or trade or professional organizations; (ii) making any passive investments where Executive is not obligated or required to, and shall not in fact, devote any managerial efforts; or (iii) subject to the prior approval of the independent directors of the Board and limitations set forth in the Company’s Corporate Governance Principals, holding directorships in other public companies.”

“Executive shall be paid a base salary at the rate of $525,000 per year (the “Base Salary”);”

“(a) Certain Terminations for Death, Disability or Incapacity; Termination by Company without Cause. If the Employment Period shall be terminated prior to the date of the Company’s 2007 Annual Meeting of Stockholders (i) by reason of Death, Disability or Incapacity of Executive, or (ii) by termination by the Company for any reason other than Cause, then all compensation and benefits for Executive shall be as follows:”

“(iv) Executive shall also be entitled to the benefits with respect to any Stock Options or other Stock-based award held by Executive on his

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termination of employment as provided under the terms of any agreements or other instruments of grant related thereto or any applicable Company equity incentive plan including, without limitation, the benefit of continued vesting following such termination of employment; provided that for options granted prior to August 9, 2004, if any such option does not expire by its terms (or the terms of the option plan under which it was issued) by the first anniversary of the Company’s 2007 Annual Meeting of Stockholders, then such options shall be exercisable until and terminate on such first anniversary, but in no event later than the third anniversary of the termination of his employment.”

“If prior to the date of the Company’s 2007 Annual Meeting of Stockholders,”

“5(d) Termination Upon Expiration of the Employment Period. In the event the Executive’s employment ceases on the date of the Company’s 2007 Annual Meeting of Stockholders as contemplated by Section 1 of this Agreement, all compensation and benefits otherwise payable to him pursuant to this Agreement shall cease, other than (x) such amounts as Executive shall have deferred (but not received) under the Company’s General Deferred Compensation Plan in accordance with the provisions of that Plan, and (y) any benefits to which the Executive may be entitled under other Company plans to the extent, if any, such plans provide benefits following such termination of employment.”

“This Agreement, including Exhibit A, supercedes”

The Existing Employment Agreement, as modified and amended by this Second Amendment to Employment Agreement, sets forth the understanding of the parties with respect to the subject matter hereof and all other terms and conditions of the Existing Employment Agreement not modified or amended hereby shall remain and are in full force and effect.

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IN WITNESS WHEREOF, the parties have executed this Second Amendment to Employment Agreement to be effective as of the date first above written.