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Mar 9, 2022 · Costco has turned into the ultimate safe-haven investment (yet again) as markets have gotten uprooted due to the Russian war on Ukraine. Shares of the warehouse giant have gained about 8% since...
- Brian Sozzi
- 8 min
Mar 22, 2022 · We’ve been reporting on the exodus of western companies out of Russia, but many western companies have chosen to stay. The Swiss food group Nestlé recently defended its decision to keep doing...
Mar 8, 2022 · Costco Wholesale Corp. extended its rally as analysts touted the retailer’s safer domestic focus while Russia’s invasion of Ukraine sends shock waves through markets around the world.
Mar 9, 2022 · Costco (COST) has turned into the ultimate safe-haven investment (yet again) as markets have gotten uprooted due to the Russian war on Ukraine. Shares of the warehouse giant have gained about 8%...
- Brian Sozzi
- 11 min
- Costco Makes A Profit Before Selling A Thing
- No Advertising? No Problem
- High Wages and High Productivity
- The Bottom Line
In fiscal 2022, net sales totaled $222.7 billion, up 16% from the previous year. The company noted in its annual report that the business benefited from the relative return to normalcy after the worst of the Covid pandemic. Its gross margin, excluding membership fees, was 12.05%, far lower than the marginenjoyed by some traditional retailers. Walma...
Most retailers spend huge sums of money on marketing to bring customers into their stores. Walmart alone spent about $3.9 billion on advertising in 2022. Costco spends essentially zero. It has no advertising budget, though it does spring for mailers targeted to prospective members and coupons sent to existing members.
COST Revenue Per Employee (Annual) data by YCharts. The average Costco employee generates nearly triple the revenue produced by the average Walmartand Target employee. Now, part of this is due to Costco's business model. Its spartan warehouse stores require far fewer employees than the typical big-box store. But what keeps customers coming back, an...
Costco has created a business model that works well. The company offers bulk items at discount prices and requires payment of an annual membership to take advantage of those low prices. The company doesn't spend on advertising. The membership system brings customers back to the stores, thereby saving a significant amount of money that is passed on ...
5 days ago · Russian forces were fighting street-to-street battles with Ukrainian troops in the outskirts of the eastern Ukrainian town of Selydove, as Moscow's forces pushed to gain control over the whole of the Donbas region, according to pro-Russian bloggers.
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Hundreds of companies have exited Russia due to its invasion of Ukraine, but others cite revenue concerns – and even humanitarianism – as reasons to stay put.
