Consumers looking to save money are scaling back on big-ticket discretionary purchases, while spending at Club name Costco Wholesale (COST) continues to thrive.
Excluding impacts from changes in gasoline prices and foreign exchange, total company core-comparable sales were up 5% on an annual basis last month.
Costco's "stronger than expected results are a signal it continues to take share in this difficult consumer environment," analysts at UBS wrote in a note.
This strategy offers higher value proposition to customers, allowing the company to raise prices while still maintaining customer engagement.
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