Where Will Costco Stock Be in 5 Years?
Costco Wholesale (NASDAQ: COST) operates in the retail sector, which means it is subject to massive amounts of competition. And yet it manages to differentiate itself in very important ways. Here's why Costco will be a much bigger company five years from now -- and the real metric that matters in the long run.
Costco is a wholesale club, which basically means customers pay a fee for the privilege of shopping at the company's stores. This changes a lot about how this giant, global retailer operates.
For starters, it has a huge focus on low selling costs. But it has to if it wants to keep members happy, since they are paying to shop at the store. Nobody would pay extra for the opportunity to pay for things they could get elsewhere for less.
Source Fool.com
