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Stock impact report

Dollar General borrows Costco's bargain hunt playbook [Yahoo! Finance]

Costco Wholesale Corporation (COST) 
Last costco wholesale corporation earnings: 3/5 04:15 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Costco drives revenue by selling memberships. “The most important item we sell is the membership card,” Costco CEO Ron Vachris told Fortune in an April interview. Membership fees matter to Costco because they generate roughly 60-70% of its operating profits from them. “This model generates predictable, high-margin income primarily from membership fees, which account for a significant portion of its operating profit, insulating the company from the volatility of discretionary spending,” The Inyo Register shared And, while membership drives revenue, the warehouse club 's famed "treasure hunt" drives traffic to its stores as members don't know what they might find on any given visit. Dollar General wants to tap into those two models — membership revenue and visits driven by treasure-hunting customers. Treasure hunts drive visits Costco founder Jim Sinegal explained how the treasure hunt model works in an interview with The Wall Street Journal We try to create an attitude Show less Read more
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