For the price of a membership, Costco allows customers to shop for low prices in its no-frills, self-service warehouse facilities.
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Costco is the new Wal-Mart, but aimed at a more affluent, yet parsimonious, customer base. These customers are likely to do OK even in an economic downturn. The drum-beat has started: Consumer-friendly media suggesting consumers buy in bulk to save money in tough economic times, like at Costco. Makes sense more folk will decide that paying their dues, driving to one warehouse location, and standing in Costco's super long lines with a huge pile of stuff (when they thought they just came in to stock up on a year's worth of catchup) is ultimately worth it.It is definitely good for Costco.Costco will do well under any consumer drought.