Costco doesn't look cheap enough

Costco Wholesale Corp.'s finance chief joked in March about how the trendy vegetable may be one way to counter competitors targeting young, urban and health-conscious customers—in other words, Amazon.com Inc. and its Prime service. The online behemoth isn't the first company to mimic Costco's fee-based model. The world's top retailer, Wal-Mart Stores Inc., has long competed directly through its Sam's Club chain. As Costco reports fiscal third-quarter results Thursday, investors would do better to study the company's existing competition before worrying about new entrants.

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