In the video below, Fool analysts Blake Bos and Isaac Pino discuss Costco Wholesale (COST 0.17%) and what investors need to keep their eye on.
Costco brings an interesting model to retail: Not a lot of promotions, not a lot of marketing. But people love it.
The question is: Can that translate to other countries? Costco has expanded to the U.K., where it now has 22 stores, and into Mexico and high-growth areas like the Pacific Rim, Australia, and South Korea, Isaac says.
But it faces competition. PriceSmart (PSMT -0.82%) has a strong presence in Latin America and Wal-Mart (WMT 1.32%) is known around the globe.
Membership is also another important area to watch for Costco. The company has sustained double-digit membership growth. But it also is looking to grow its pricier executive memberships. That could bring more to the bottom line.
Investors should keep a close eye on membership renewals and upgrades, Isaac says.
