Competition And Profit ReinvestmentThe 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.
Labor And Margin ConstraintsNew club openings, growth in digital, and Fresh 2.0 will require additional labor, limiting margin upside.
Renewal Rate And Fee RiskThere is a risk that the 90% renewal rate could be tested by the upcoming fee raise.