With one exception, March was a pretty unspectacular month for the three big-box retailers. The delayed arrival of the Easter Bunny was blamed for the lackluster results. The lone standout, Motley Fool Stock Advisor pick Costco
Just like last month, Target had the toughest road, since it had to improve upon 8.2% growth in the year-ago quarter. Costco's strong month is even more impressive, when you consider that it was following its own 7% increase in the year-ago period. Wal-Mart, the world's biggest retailer, continued its slow and steady growth, posting a 4.3% gain in the year-ago quarter.
As the table below shows, this marks the eighth consecutive month that Costco has led the way. It reported an 8% gain in February, while Target and Wal-Mart were struggling to keep pace with 3.6% and 3.2% growth, respectively.
9/05 |
10/05 |
11/05 |
12/05 |
1/06 |
2/06 |
3/06 |
|
---|---|---|---|---|---|---|---|
Costco |
11 |
10 |
6 |
7 |
9 |
8 |
7 |
Target |
5.6 |
5.7 |
2.6 |
4.7 |
5.2 |
3.6 |
2.2 |
Wal-Mart |
3.8 |
4.3 |
4.4 |
2.2 |
4.7 |
3.2 |
1.4 |
Looking ahead to next month, Target and Wal-Mart expect to give Costco a better fight. Both are feeling confident about posting strong numbers, particularly Target, which is predicting comps growth of 9% to 11% in April. Wal-Mart also hopes to have one of its best recent performances, predicting a same-store sales increase of 4% to 6%.
Based on comps data, Costco is clearly the frontrunner of this trio. However, Foolish investors know there are a plethora of other measures that must be taken into account before making a purchase. I like this segment and each of these companies, but not at any price. Do your Foolish research and determine whether any of them deserve to be a part of your portfolio.
For more on the big box battles:
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Fool contributor Mike Cianciolo owns shares of Wal-Mart, but holds no financial position in any other company mentioned in this article. The Fool has a disclosure policy.