I fully understand that an economy like the one we're in adversely
effects every company, regardless of how they function individually.
But here's a few reasons why Costco is still a long play, and
considerably a great buy right now. (This is information that was
provided to some of our sales associates at a recent seminar in
Sacramento, California).

[-] Whereas other retailers rely on their sales to drive growth,
Costco does not. Out of last year's take of $1.62 billion, $1.5
billion of it was received before every selling a single item through
membership costs. Basically, Costco is just a big show, to keep you
paying for your membership.

[-] The costs of our products aren't always cheaper, but often are,
which should easily maintain our flow of membership fee revenue.
Average mark-up on all items are a bit over 11%, while the highest we
will mark-up an item is 14%. The average for other retailers is over
60%.

So, even if Costco didn't make a dime on their sales, they would still
have over 90% of their current profits. Also, just to point out the
strength of my own warehouse, we are not only maintaining our members,
but are consistently getting them to upgrade to our Executive
membership...which costs an additional $50 annually.