Costco's Latest Brilliant Move

Costco 's (NASDAQ: COST) membership model is a great example of a business that's nearly impossible for competitors to copy. Once members commit to the annual fee, they have an incentive to spend more at Costco than competitors because of the low prices. But to boost profits Costco needs to increase its membership fees, which it just did. Travis Hoium examines the move in this video.

*Stock prices used were end-of-day prices of July 13, 2024. The video was published on July 15, 2024.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Target, and Walmart. The Motley Fool has a disclosure policy . Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.