Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Costco Wholesale (NASDAQ: COST)

Grocery Wars

Is Costco’s Growth for Real?

It looks as if Costco is well-positioned to deal with the future and ward off the Amazon challenge. More importantly, Costco seems well positioned to survive and make money in America in which a large percentage of the population may no longer drive.

That’s good news for investors because Costco is a great income stock. Its investors enjoyed three 50¢ dividends, one 45¢ dividend and one $7 super dividend in 2017, NASDAQ reported.  Costco shareholders took home $8.95 in dividend income in 2017.

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Grocery Wars

Is Dollar Tree Making Money?

Even with a good holiday season, Dollar Tree may lack the resources to survive or even remain competitive. It reported revenues of just $21.52 billion in October 2017.

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The Death Spiral

Retail Apocalypse Heats up 6,700 stores have closed in 2017

2017 has become the worst year for store closings in the United States possibly since the Great Depression. There is a strong possibility that the actual number of store closings might exceed 10,000. Such a number is possible because analysts like Credit Suisse may not be counting franchisees and mom and pop stores that will also be going under.

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Grocery Wars

Monster Banking and Credit Cards Pay off at Citigroup

An intriguing possibility might be for Citibank to offer an Apple Pay, Venmo, Tez, Alipay, Walmart Pay, Facebook, PayPal, or Android Pay credit card. Since PayPal is experimenting with a Venmo Visa that makes a lot of sense. Such a card would allow a customer to pay with either their digital wallet balance or with a Visa or MasterCard line of credit. The customer would also get the ability to access his or her line of credit via the payment app.

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Grocery Wars

Costco’s Sales Approach $130 Billion

What’s more impressive is that Costco achieved that revenue growth with one website and brick and mortar stores in a handful of countries including the U.S., Canada, Japan, and Australia. Amazon has vast diversified operations that include Amazon Web Services, a movie studio, Amazon Prime, dozens of lines of private label products, Zappos, Whole Foods, and far more.

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Grocery Wars

Aldi wants to become Third Largest US Grocer

The German discounter plans to open 2,500 stores nationwide by 2022, Business Insider reported. That would make Aldi, America’s second largest supermarket operator behind Kroger (NYSE: KR) which operated 2,796 supermarkets and supercenters in 2016.

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Grocery Wars

Seven Threats to Costco

The available data indicates major changes in American lifestyles that bode ill for Costco. Statistics show that younger Americans are less likely to have a driver’s license, cook; data shows that Americans now spend more at restaurants than grocery stores, and are less likely to own a home (only 62.9% of Americans owned a home in 2016 the lowest level since 1965, Bloomberg reported). Costco’s business model is built upon the assumption that Americans will own and use a car; make most of their food purchases at a grocery store, and require home-maintenance supplies.

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Grocery Wars

Is Costco still a Value Investment?

The billion dollar question must be; is Costco Amazon proof? My take is that Costco is fairly invulnerable to today’s Amazon – but not tomorrow’s Amazon.

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The Death Spiral

How are Office Supply Stores Surviving?

Staples is definitely an acquisition target because its purchaser would get around 1,225 stores and $17.30 billion in revenues for a low price. Staples reported a stock value of $10.10 a share, a market cap of $6.597 billion and an enterprise value of $6.597 billion on June 29, 2017.

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Grocery Wars

Dollar General is Bigger than Sears

A milestone has been reached in the world of American retail; Dollar General’s (NYSE: DG) sales are greater than those of Sears Holdings (NASDAQ: SHLD).

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