Is Costco a Recession-Proof Stock?
Two types of retailers have proven resistant to the so-called retail apocalypse: chains that offer good value, and those with a treasure hunt aspect. Costco (NASDAQ: COST) has both of those elements, along with a number of other things that make the stock a smart bet if you believe a recession is inevitable.
The warehouse club has essentially been a model of consistency, even as digital retailers and brick-and-mortar chains that have invested heavily in the omnichannel model have brought more sales online. Costco has steadily added members every quarter, kept its renewal rate around 90%, and slowly added new warehouse locations. It may not be a sexy model, but it's one that might make the company even more successful if consumers tighten up their personal purse strings.
Costco offers discounts and a treasure-hunting aspect. Image source: Costco.
Source Fool.com
