People flock to Costco (NASDAQ:COST) for everyday goods, but you can also buy consumer discretionary items such as vacation packages and expensive jewelry at the warehouse retailer. In this video clip from "Beat & Raise," recorded on Sept. 24, Fool.com contributors Neil Patel and Demitri Kalogeropoulos discuss how this piece of the business is contributing to the retailer's phenomenal growth.
Neil Patel: It's like you said, Demitri and Brian, I think both of you alluded to this, that it seems impressive they're still growing. I don't know what revenue growth that you mentioned, sorry, but they're still growing after last year's surge. I think for a company this size, I think investors who are on the sideline think that, OK, very happy, 100 plus warehouses, how much more can they grow? Last year was basically free marketing for Costco. People who weren't already members, now you have a reason to be a member of Costco. I think they're going to attack members who see the value proposition of being a customer there, and so the fact that they're still growing compared to 2020 is pretty remarkable.
Demitri Kalogeropoulos: On that point too, one other cool thing about Costco is, they're obviously a consumer staples they're in that category of obviously pantry staples, and that's why they were an essential retailer through the pandemic and they stayed open and people just flock to their stores. But they also have a huge consumer discretionary business, I mentioned there was travel, you can buy vacations and stuff: cruise ship, cruise lines, whatever you want. I was reading the conference call today and they mentioned they sold over $100,000 rings, which is interesting when a single-product sale is big enough that the CFO would mention in their earnings call. [laughs] But Costco does that. They've also got that really high-end. If you want to be very discretionary with your spending, you can do that at Costco too.