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Better Buy: Costco vs. TJX Companies


Brick-and-mortar retail doesn't have a lot of success stories, especially these days with the coronavirus pandemic slamming the industry.

However, Costco (NASDAQ: COST) and TJX Companies (NYSE: TJX) are each leaders in their respective niches of the retail sector, and have a set of unique competitive advantages that have made them among the best retail stocks to own. Operating as a membership-based warehouse retailer, Costco has a loyal customer base that keeps returning for its rock-bottom prices and unique product selection. Off-price leader TJX, the parent of TJ Maxx, Marshall's, and Home Goods, is also known for its bargain prices on apparel and home goods, as well as its frequently-rotating inventory, which creates a so-called treasure-hunt experience, meaning shoppers will never find the same assortment twice.

Image source: Getty Images.

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Source Fool.com

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