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Which Big Box Retailer Is Best?

Tuesday, 1 Jun 2010 | 7:41 PM ET

Discount retailers with low costs and attractive pricing will do well in 2010, Cramer said.

Wholesale clubs, in particular, are gaining market share in food and their membership-based business model is thriving. So when it comes to investing, how do you decide between two household-name warehouse retailers, like Costcoand BJ's ?

Cramer notes that Costco sales per square feet double BJ's. Costco also focuses on private labels — the generic brands that are competitive with national brands in terms of status and quality. Their Kirkland Signature brand has nearly 20% sales penetration while BJ's private label penetration dropped from 13% in 2007 to 10% in 2009. Costco also has better same store sales with a 10% increase in its latest quarter while BJ's reported an 8% increase in its latest quarter.

But the best metric? Watch the video to see how Cramer breaks down this side-by-side comparison in greater detail.

A Hard Bargain?
Comparing Costco to BJ's, with Mad Money host Jim Cramer.



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