Costco's (NASDAQ: COST) warehouse club model, which lets members buy bulk products at steep discounts, has become a major threat to traditional supermarkets like Kroger (NYSE: KR) in recent years. Costco's own Kirkland Signature brand also competes against Kroger's private-label offerings and other packaged food brands.
Investors clearly preferred Costco to Kroger over the past five years, as Costco's stock more than doubled and Kroger's dipped 10%. But will Costco remain a stronger investment over the next five years?
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Source Fool.com