Thursday, March 4, 2010

Costco, BJ's Squeezed By Competition

Forbes

Bulk savings retailers Costco and BJ's Wholesale Club both reported quarterly earnings that fell short of the Street's expectations Wednesday, despite better sales.

BJ's forecast "paints a story of a company that will have difficulty on the gross margin line that is married to further spending on the technology side of the business," said Brian Sozzi, an analyst for Wall Street Strategies, in a note. He attributes BJ's "lackluster" fourth-quarter turnout to competition in the fresh food department and weak sales in discretionary merchandise.

Link to full article: http://www.forbes.com/2010/03/03/costco-bj-wholesale-markets-equities-retail-earnings.html?boxes=marketschannelnews