Apex Trader Funding (ATF) - News
Costco's Fee Hike Raises Stakes For BJ's, Advance Auto Parts Faces Rough Road Ahead
As retailers prepare to report earnings, investors should gear up for a mixed bag, particularly for Advance Auto Parts Inc (NYSE:AAP) and BJ’s Wholesale Club Holdings Inc (NYSE:BJ).
Walmart’s High Bar, Costco’s Layer Of Pressure
While Walmart Inc (NYSE:WMT) set a high bar with its recent performance, JPMorgan analyst Christopher Horvers believes Advanced Auto and BJ’s are unlikely to match it, especially as Costco Wholesale Corp (NYSE:COST) adds another layer of pressure.
Costco recently announced a membership fee hike, raising its Gold Star membership fee by $5 to $65 and its Executive membership fee by $10 to $130, effective September 1.
Read Also: Costco Hikes Membership Fees At Long Last; Analysts Caution Of ‘Sell The News’ Event, Point To Stock Underperformance After Last 3 Hikes
BJ’s Price Advantage
This move puts BJ’s in a tough spot. While Costco’s dominance in the wholesale space allows it to raise prices confidently, BJ’s may need to think ...