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Non-Tech : Costco, slow but sure? -- Ignore unavailable to you. Want to Upgrade?

To: David R. Colby who wrote (1029)	3/9/2000 8:27:00 PM
From: Mel Fox	Respond to of 1147

Gentlemen: I fully agree!! Costco has some very, very good management and the "bear" side of the argument just didn't give enough credence to that aspect of Costco's success. I small example of the lack of basis for the "relocation put-down" by the "bear" is: In my area Costco relocated a store about 2 miles from the old one, about 2 years ago. That was a brilliant move. The old store was adequate and located in a very good position. The new store is, of course bigger, but located in a fantastic location next to one of the largest Malls in the NorthWest and where new, class A office buildings are just now being constructed. And the growth projections are super! I can't quantify the value differences but, they have to be large if not huge. A couple years earlier they did the same thing with another store across town ... no Mall to be near but, they put the new store in a phenomenal growth area for Real Estate value. So, with both relocations there is more traffic, bigger box for more product, better parking, room for gas stations, and just plain super growth potential for the real estate values. When both old stores were built 6 or 7 years ago they couldn't have been put where the new stores are now because there were no streets in either new area at that time. I was impressed when I saw what was taking place .... under no circumstance was I concerned that they had made mistakes ... it is obvious that the growth and development had changed and they just took advantage of the opportunities .... Darned Good Management! What the "bear" describes as poor management is in fact great management and great decision making on their part. Nope, can't speak to other relocations ... just the two near where I live. I wonder if we may have to go through a few quarters of growth by COST in order to get the EPS to be more attractive to the "Street". Hope not, but just maybe ....