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 (NASDAQ:COST), seemed to be unaffected by the shift in Easter's arrival from March to April. It reported a 7% increase in comps, easily exceeding its rivals' performance. Target (NYSE:TGT) increased its comps by 2.2%, while Wal-Mart (NYSE:WMT) once again brought up the rear with a 1.4% gain.
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.
