Ppeople flock to Costco (NASDAQ: COT) for everyday goods, but you can also purchase discretionary consumer items such as vacation packages and expensive jewelry from the warehouse retailer. In this “Beat & Raise” music video, recorded September 24Fool.com contributors Neil Patel and Demitri Kalogeropoulos discuss how this part of the business is contributing to the retailer’s phenomenal growth.
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Neil Patel: It’s like you said, Demitri and Brian, I think you both hinted at it, that it looks impressive that they’re still growing up. I don’t know what revenue growth you mentioned, sorry, but they continue to grow after the increase last year. I think for a company of this size I think the investors who are on the sidelines think, okay, very happy, over 100 warehouses, how much more can they grow? Last year it was basically free marketing for Costco. Those who weren’t already members, you now have a reason to be a Costco member. I think they’re going to attack members who see the value proposition of being a customer there, and so the fact that they continue to grow from 2020 is pretty remarkable.
Demitri Kalogeropoulos: On this point too, another interesting thing about Costco is that they are obviously consumer staples, they fall into that staple food category, and that’s why they were a vital retailer during the pandemic. and they stayed open and people are pouring in. to their stores. But they also have a huge consumer discretionary business, I mentioned there is travel, you can buy vacations and everything: cruise ship, cruise lines, whatever you want. I was reading the conference call today and they mentioned that they have sold over 100,000 rings, which is interesting when a sale of a single product is big enough for the CFO to mention it on their conference call. . [laughs] But Costco does. They also have this very high end. If you want to be very discretionary in your spending, you can also do that at Costco.
Demitri Kalogeropoulos owns shares of Costco Wholesale. Neil patel has no position in any of the stocks mentioned. The Motley Fool owns stock and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.