Wholesale retailer Costco has a high-quality problem on its hands, CNBC’s Jim Cramer said Friday in response to the “shopping frenzy” at its new China store. Bloomberg reported that tens of thousands of people lined up outside of Costco’s latest store in the southern Chinese city of Shenzhen for its grand opening Friday at 9 a.m. The crowds were so big that crowd-control measures were needed to get people in and out of the new warehouse club location. If you like this story, sign up for Jim Cramer’s Top 10 Morning Thoughts on the Market email newsletter for free . Costco, the membership-only global wholesale retailer who has a majority of stores in the United States, is not done “saturating the world,” Jim Cramer said Friday. “If you have thousands of people for a new store, I think you have room for more Costcos,” he added. Shares of COST were up roughly 4% Friday at $677 apiece. Costco is a volume play where members can purchase merchandise in bulk at lower prices than traditional retailers. The company is coming off a strong December sales report that showed an improvement in discretionary spending. Costco’s nonfoods, a proxy for discretionary purchases, was positive high single digits, an acceleration from November. Cramer’s Charitable Trust, the portfolio used by the CNBC Investing Club, has a stake in Costco. Here’s a full list of the stocks in Jim’s Charitable Trus t, the portfolio used by the CNBC Investing Club.
Wholesale retailer Costco has a high-quality problem on its hands, CNBC’s Jim Cramer said Friday in response to the “shopping frenzy” at its new China store.
Bloomberg reported that tens of thousands of people lined up outside of Costco’s latest store in the southern Chinese city of Shenzhen for its grand opening Friday at 9 a.m. The crowds were so big that crowd-control measures were needed to get people in and out of the new warehouse club location.
Source link: https://www.cnbc.com/2024/01/12/cramer-costco-not-done-saturating-world-as-china-store-draws-crowds.html