Excluding gasoline, gross profit margins took a 30 basis-point hit in Q3, mainly due to higher material and transportation costs combined with inflation and price markdowns. A competitor of Costco Wholesale, BJ's opened its first warehouse club store in 1984. Costs for commodities like milk, cheese, and chicken have gone up throughout the year, and BJ's has struggled to provide the value offering it is known for while still pulling in some profit.