Pain at the Pump: Can Cheap Gas Drive the Bottom Line for Costco?

Global economic conditions continue to drive soaring oil prices worldwide, and shoppers nationwide are looking for cost-saving alternatives for many key goods amid inflation at home. Costco (NASDAQ: COST) offers a balm for consumers stung by the pain at the pump, with low prices and loss leaders on many consumer staples as well as membership benefits unavailable from many other wholesale competitors. These might just be the tools it needs to outpace the bear market, stay strong in a recession, and even emerge stronger for its efforts.

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Prices at the pump are up 50% in just a single year, and recession may be just around the corner. Costco tempts shoppers to visit, or even drive out of their way, for average savings of up to $0.37 per gallon, which can add up quickly over time. Once they've arrived, shoppers can drop in for $1.50 hot dogs and drinks, $10 pizzas, and $4.99 rotisserie chickens, and maybe pick up additional consumer staples along the way.

Source Fool.com