Description: Costco – the huge warehouse style retailer – beat Walmart and Target in sales growth in the most recent quarter. Costco was up over 8% versus about 1.5% for Walmart and 3.2% for Target. Perhaps in a bit of a surprise though, Costco shares fell about 0.1%.
Source: Globe and Mail.com
Date: March 5, 2015
1) What do you think may be some of the reasons behind Costco’s success?
2) What are some internal control considerations for a giant retailer like Costco?
3) Why would Costco’s shares have fallen in the face of this positive news? What might accounting theory have to say about this?