"Costco's membership fee model contributes disproportionately to its gross profit, providing a reliable revenue stream even during economic downturns."
"Both retailers are positioned to benefit from shifting consumer behavior toward value and essentials, particularly as credit card debt rises and a potential recession looms."
Jim Cramer has identified Walmart and Costco as standout retail investments because of their ability to withstand economic challenges. Cramer emphasizes Costco's unique membership fee model, which significantly boosts its gross profit margins. Both companies are well-positioned to thrive amid changing consumer behaviors towards value-oriented shopping, especially as credit card debt rises and the economy shows signs of a potential recession. Their large scale and operational efficiencies give them an advantage over competitors, including e-commerce giant Amazon.
Read at 24/7 Wall St.
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