BJ's: Contender for Discount King?
In Cramer's week-long search for the discount king, where he looks for the best of breed, low priced retailer that you can own even in an economy that's on the mend. He's putting stocks in an arena and letting them compete, comparing them just like they would at a major hedge fund.
On Monday, the contender in the ring wasTJX , which Cramer found to have a sourcing problem, dependent on cheap merchandise at fire-sale prices from troubled retailers that have too much inventory. But right now, they are in a bit of a mess and will lose the battle for rule of the kingdom of discounters.
Next up: BJ's . With stronger same store sales, the chain grew at a pace of 2.9% excluding gasoline sales which have taken a hit after prices for the fuel have dropped since the end of 2008. To compare, competitor Costco had same store were flat last quarter, excluding gasoline, and fell by 1% in July.
Is BJ's in contention to be the discount king? Cramer thinks it has a chance... a better chance than TJX anyway. And where does it fit into the warehouse space? To find out, check out the video!
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