Costco (COST) rebounded in July, thumping same-store sales expectations by posting a 10.0% gain vs. the 7.8% consensus. In fact, the company blamed weak tobacco sales (aren’t cigarettes recession-proof?) and competition between Costco’s own stores for not sending the sales even higher.
While it’s clear that COST’s cheap(er) gasoline lures in customers, we have another theory for their recent success: Consumers are buying in bulk to decrease the amount of shopping trips they take, thereby saving money on gas.
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