With so many retailing giants such as J.C. Penney (NYSE: JCP ) , Sears, and Best Buy (NYSE: BBY ) falling by the wayside in what has aptly been named the "Big Box Apocalypse," it's very reassuring to see Costco (NASDAQ: COST ) , the leading warehouse retailer in the U.S., thriving in the midst of all the retail industry snafu. Costco is still posting healthy gains even as the once mighty Wal-Mart and Target struggle to remain afloat. So what makes Costco tick?
Despite the prevailing weakness in the U.S. retail sector, Costco has recorded impressive sales growth in the last few quarters. The firm's comparable-store sales grew at an average pace of more than 5% for the last three quarters. The biggest drivers fueling this new growth include the company's rapidly swelling membership base and the robust growth of the warehouse industry in the country. Costco's core value proposition, strong private labels, and ancillary businesses have also been at the helm of this progress.