Costco….you’re outta here.
As some (many? most? all?) of you know, I like to trade around stocks I know and love. Or maybe better said, stocks of companies whose products/services I use. They include my supermarket (SWY), my cable company (CMCSA) and my guilty pleasure (MCD).
When I say “trade around” by the way, that means I take the approach of buying when they’re low, and selling when they’re high. If I buy low and they go lower, I just buy more: I feel I know these companies well enough, to be confident they’ll come back. (Hopefully not taking too long in the process.)
One company on my list for quite awhile has been Costco. (COST). Nancy and I shop there about once a month, picking up everything from wine, to flank steak, to coffee, to printer paper. Our average bill? About $500.
The past few trips, though, the average bill has been a good bit over $500 even though our shopping cart contents have been about the same. And this past weekend, it really hit me: we didn’t pick up much of anything, and even though I thought our bill would be about $300, it still turned out to be a bit over $400.
Now, I don’t know if it’s commodity inflation or Costco raising prices, but I found it all disconcerting. So much so that Nancy and I started comparing prices and figured it may be cheaper to do almost all our shopping at Safeway, especially when you factor in gasoline costs.
Don’t get me wrong: I still love Costco. But, I figure we’ll be going there a lot less and when that happens, off my stock list it goes. Sorry Costco: I love you…but I’ll miss you.