Wholesale retailer Costco has a quality problem, CNBC’s Jim Cramer said Friday in response to a “shopping frenzy” at new stores in China. Tens of thousands of people lined up outside Costco’s newest store in the southern Chinese city of Shenzhen for its grand opening at 9 a.m. Friday, Bloomberg reported. The new Warehouse Club location was so crowded that measures had to be taken to regulate people coming in and out of the store. If you liked this article, sign up for free to Jim Cramer’s Morning Top 10 Market Email newsletter. Costco, the global membership-based wholesale retailer with the majority of its stores in the United States, is not done “saturating the world,” Jim Cramer said Friday. “I think there’s room for more Costcos if the new stores draw thousands of people,” he added. COST stock rose about 4% on Friday to $677 per share. Costco is a volume play that allows members to purchase items in bulk at lower prices than traditional retail stores. The company has released a strong December sales report showing improvement in discretionary spending. Discretionary purchasing agent Costco’s non-food business posted a low-single-digit gain, accelerating from November. Cramer’s Charitable Trust, a portfolio used by CNBC Investment Club, has a stake in Costco. This is a complete list of stocks from Jim’s Charitable Trust, a portfolio used by CNBC Investing Club.
wholesale retailers costco “The company has a quality problem,” CNBC’s Jim Cramer said Friday, following a “shopping frenzy” at new stores in China.
Tens of thousands of people lined up outside Costco’s newest store in the southern Chinese city of Shenzhen for its grand opening at 9 a.m. Friday, Bloomberg reported. The new Warehouse Club location was so crowded that measures had to be taken to regulate people coming in and out of the store.
