There’s More Than Meets the Eye to Costco

There’s More Than Meets the Eye to Costco

Investors seem to panic about Costco (NASDAQ: COST) every time another retailer adjusts its digital strategy. Whether it's Amazon or Wal-Mart (NYSE: WMT), each time a move gets made, shares in the warehouse club take a dip. This happens because many analysts believe that even successful retailers will eventually succumb to the so-called "retail apocalypse."

It's easy to see why investors and analysts would feel that way. Most department store chains have struggled, and even giants including Wal-Mart have had to make major changes to fight off Amazon and other digital rivals.

The reality, however, is that Costco isn't a typical retailer. It's a membership club that keeps its members on board as much through the promise of savings as through actually saving people money.

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Source: Fool.com