Competitive LandscapeThe 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.
Guidance And Market ReactionQ4 guidance was below consensus given the shift in store openings and tougher expense comparisons.
Operational CostsNew club openings, growth in digital, and Fresh 2.0 will require additional labor, limiting margin upside.