Costco is proving that its reliable model can withstand economic headwinds. Lululemon is dealing with spending cyclicality and tariffs, but its core business is strong.
Costco's membership model leads to loyalty and sales volume in nearly any environment. It's launching new digital services that stand out from the competition.
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Costco's membership fees essentially cover all operating expenses, giving it pricing power competitors can't match. Renewal rates above 90% underpinned by a loyalty flywheel that's next to impossible to replicate.
Costco has outperformed the market and many other Washington-based companies over the last five years. The warehouse retailer has a powerful global brand and a solid growth history.
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