Four compelling motivations to invest in Costco shares without delay.

Dedicated investors might recognize that the typical consumer is currently dealing with some significant financial pressure. For instance, Coca-Cola reported an unexpected decrease in volume sales during the first quarter. Meanwhile, brands like Restaurant Brands (responsible for Burger King) and Yum! Brands both saw a dip in last quarter's same-store sales despite offering alleged "value" meals. Even economical retailer Dollar General is finding it tough to keep revenue steady, let alone boost it.

However, it's important not to draw hasty conclusions about every consumer-centric stock out there. One example of a company successfully navigating these adverse conditions is Costco Wholesale. Indeed, its performance is strong enough to warrant investing in its warehouse retailer stock. Four compelling arguments support this investment decision.

1. It's a strong, profitable grower

Costco is a membership-based retail chain. For an annual fee of $65 or $130 (depending on your plan), members can shop at its 861 discount stores. Despite initially focusing mainly on bulk packaging for basic consumer goods in its early days, many of its products are now available in more manageable, consumer-friendly bundles. Effectively, it's become a grocery store and general merchandise store, and its model has proven successful.

This success hasn't wavered. Costco's revenue has consistently risen for decades, and its profit growth has kept pace. There's no reason to suspect that this growth trajectory will change anytime soon.

2. Costco stores continually increase foot traffic -- and memberships

The company's achievement isn't solely attributable to expanding its store count. Each existing store is capable of expanding its market reach.

The crucial metric is same-store sales growth, which refers to top-line growth for stores that have been operational for at least a year. This metric eliminates any improvement in revenue resulting exclusively from new store openings.

As for its performance in this area, check out the chart below. Despite the influence of the COVID-19 pandemic on sales between early 2020 and late last year, things have stabilized. Since the beginning of this year, its stores have averaged sales growth of around 4%, outpacing inflation. Most other retailers are nowhere near producing this level of same-store sales growth at the moment.

It's also worth noting that membership growth is surpassing both new store builds and population growth. As of August 2022, Costco has 76.2 million members, a 7.3% increase from the previous year. However, the company has only opened 3.3% more brick-and-mortar stores compared to that period.

3. The stock's upward momentum has paused

Investors familiar with Costco's stock will know it's known for steady, if sometimes incremental, progress. That trajectory hasn't been the case lately, though. Costco shares are currently trading around $890, which mirrors their price from early July. This sudden halt is unusual.

But it's also a potential buying opportunity. Don't be misled. Costco stock can certainly experience setbacks. At some point in the future, it might dip below $890 again. However, based on history, the upside potential outweighs the downside risk from this point.

4. This is how customers shop now

Perhaps the most compelling reason to invest in Costco stock is the reality that a significant portion of customers now shop like Costco does. They seek value through membership-based stores, even if the packaging isn't always convenient.

This wasn't always the case. Early club-warehouse stores were limited in their offerings and often sold inconveniently sized bulk items. Consumers were also hesitant to pay for the privilege of shopping in a specific store.

Times have changed, though. Now, consumers are accustomed to paying monthly or yearly fees for various services. Streaming giants like Netflix and Amazon Prime, fitness equipment provider Peloton Interactive, and even some credit cards fall into this category. This psychological fee barrier is now easier to cross.

The other reason why 76.2 million consumers don't mind paying an annual fee to shop at Costco is that it caters to how cost-conscious shoppers think and behave now. They're price-sensitive and open to adapting to bulk-packaged items. Above all, they have access to technology and data that help them find the best deals. Costco has a distinct competitive advantage in this evolving consumer landscape.

In light of the financial challenges faced by numerous consumer-centric companies, investing in Costco Wholesale's warehouse retailer stock could be a wise decision. The company's consistent revenue growth, strong membership base, and resilience to market fluctuations, as demonstrated by its steady same-store sales growth, make it a promising investment option for those seeking profit from the finance sector.

Costco's successful business model, which includes both grocery and general merchandise sales, has proven to be a mainstay in the retail industry, even amidst economic pressures and shifts in consumer behavior. This stability in the face of challenging financial conditions makes Costco a potentially lucrative investment opportunity in the realm of money management and finance.