The warehouse club operators Costco (COST) and PriceSmart (NASDAQ:PSMT) have been enhancing their omni-channel platforms and curbside pickups to emerge stronger in the “new normal.” Because consumer spending is expected to increase substantially this year, bolstered by the government’s latest recovery bill, these companies are uniquely positioned to benefit as the COVID-19 pandemic ebbs. Both have been methodically expanding their product offerings and growing their digital presence. But let’s find out which of these stocks is a better buy now.Costco Wholesale Corporation (NASDAQ:COST) and PriceSmart, Inc. (PSMT) are two of the largest warehouse club operators in the United States. COST provides branded and private-label products, dry and packaged foods, and groceries, as well as apparel and small appliances. PSMT offers private label consumer products and provides other services, ranging from optical to automobile tires, to businesses and individuals.
While the pandemic-driven global recession affected brick-and-mortar retail stores deeply, businesses that have been able to meet the challenge by modifying their business models are emerging stronger. Furthermore, the mass vaccine rollout should improve the retail sales landscape markedly this year. This, along with the federal government’s new, jumbo recovery package, should boost consumer spending on products offered by warehouse companies like COST and PSMT.
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