Competitive ChallengesThe path to reach the inflection point is not straightforward as warehouse club retail is fiercely competitive, and BJ will likely need to reinvest profit upside back into the business for several years.
Margin ConstraintsNew club openings, growth in digital, and Fresh 2.0 will require additional labor, limiting margin upside.
Renewal RiskThere is a risk that the 90% renewal rate could be tested by the upcoming fee raise.