![]() The Motley Fool owns shares of and recommends Amazon and Costco Wholesale. Jason Moser owns shares of Whole Foods Market. Chris Hill owns shares of Amazon and Whole Foods Market. John Mackey, CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Hill: And if you're on Groupon's mailing list, you're going to know pretty quickly whether or not this is working for Costco, because if it is, you can probably expect to see a lot more of them. But yeah, this is a way to reach out to an audience that they haven't really been able to crack yet, and if it brings a few people in, that's great. I think that's an acknowledgment from management that it's going to be tough times in the days ahead for capital appreciation on the stock, so they are rewarding those shareholders today. Moser: And the fact that they took out $3 billion in debt to pay that dividend. That's just something I can't get past for whatever reason. man, they buy back shares, and with a company like this, that share count needs to come down and it goes up. They are a very customer-centric company. But I think Costco has a place in the portfolio, if you're looking for some sort of defensive play there, a little bit of a less volatile holding. If I have $1,000 to plunk down on Amazon or Costco, I'm going to take Amazon 10 times out of 10. But the growth prospects for the company going forward aren't the most attractive in the world. So Costco is a very good, very customer-centric business that has done something well for a really long time, and I don't expect that to change at all. You don't necessarily need to be a member to do warehouse-style shopping. ![]() ![]() I think it makes that question mark the little bit more pronounced, because there are obviously plenty of different options out there today. But I do think this at least makes the question mark as to how attractive a model this is going forward for younger generations of shoppers. It's not going to cost them anything to try. Now, whether it works, that's the question. ![]() And you both made the point - this really gives them a chance to bring new members in and then do what they do best in retaining them. It's a way for them to reach out to an audience they have yet to capture. Moser: So this is marketing, plain and simple, for Costco.
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