Major Grocery Stores Closed on Christmas Day, Convenience Stores Open
- Grocery Store Closures: Major grocery retailers like Walmart, Kroger, and Trader Joe's are closed on Christmas Day, allowing employees a much-needed break, which highlights the retail industry's focus on employee welfare during holidays.
- Convenience Store Operations: Stores such as 7-Eleven, CVS, and Walgreens remain open on Christmas Day, catering to last-minute consumer needs, demonstrating the significance of convenience retail during holiday periods.
- Varied Operating Hours: While most grocery stores may close early on Christmas Eve, a few like Save Mart still open on Christmas Day, providing limited shopping options to meet urgent customer demands.
- Consumer Choices: With limited store options available on Christmas Day, the operation of convenience stores offers essential goods to consumers, reflecting a shift in shopping patterns during the holiday season.
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- Declining Renewal Rates: Costco's renewal rates have dropped to 92.2% in the U.S. and Canada and 89.7% globally, down 10 basis points from the previous quarter, indicating that the increase in digital memberships is negatively impacting renewals, which could pressure company revenues.
- Membership Income Growth: The company reported membership fee income of $1.329 billion, a 14% year-over-year increase, with the membership fee hike accounting for nearly half of this growth, demonstrating that despite declining renewal rates, the membership base continues to expand.
- Younger Membership Trend: Nearly half of new members are under 40, indicating Costco is attracting more younger, digitally-native consumers; however, this demographic tends to renew at lower rates, increasing future renewal challenges for the company.
- Response Strategy: Costco aims to improve renewal rates by enhancing engagement with digital members, although a slight decline is still anticipated over the next few quarters, yet the company remains optimistic about the initial success of its new communication strategies.
- New Trillion-Dollar Member: Walmart officially surpassed a $1 trillion market cap on February 3, becoming the 13th publicly traded company globally to reach this milestone, showcasing its strong competitive edge and market influence in the retail sector.
- Tech-Driven Growth: Walmart's push into online shopping and the Walmart+ subscription service led to a 27% increase in global e-commerce sales in the fiscal third quarter, enhancing customer experience and bolstering the company's long-term profitability.
- Potential Industry Leaders: JPMorgan Chase and Visa are seen as the next candidates for the trillion-dollar club, with market caps nearing $864 billion and $636 billion respectively, highlighting the stability and growth potential of the financial sector.
- Economic Cycle Challenges: While Walmart's success is notable, fluctuations in the economic cycle may pose challenges to the growth of JPMorgan Chase and Visa, prompting investors to carefully assess the market environment's impact on financial stocks.

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Software Stock Slump: The recent decline in software stocks has raised concerns among investors, reflecting broader market volatility.
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Dollar's Ongoing Malaise: The U.S. dollar is facing persistent weakness, impacting global trade and investment strategies.
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- Tax Season Gains: JPMorgan analysts highlight that Costco is poised to benefit the most in the upcoming tax season, as consumers are expected to receive larger refunds, particularly compared to BJ's Wholesale and Walmart's Sam's Club.
- Market Performance Insight: Costco's stock has risen about 15% year-to-date in 2026, recovering from a 6% decline in 2025, indicating strong potential for recovery driven by tax stimulus.
- Consumer Demographic Advantage: With a membership base skewed towards mid- to high-end consumers, analysts believe Costco is well-positioned to attract shoppers during the tax season, especially with its strong performance in big-ticket merchandise.
- Overall Retail Impact: JPMorgan estimates that last year's tax law changes could lead to over a 1% increase in core retail sales in 2026, with the impact being particularly pronounced during the tax refund season, further solidifying Costco's market position.
- Significant Sales Growth: Costco's January sales rose 9.3% year-over-year, with same-store sales increasing by 7.1%, demonstrating the company's strong resilience in an uncertain market environment and further solidifying its leadership position in retail.
- Accelerated Digital Sales: Costco's digitally enabled sales surged 33.1% year-over-year in January, significantly up from 18.3% in December, indicating that the company's efforts to enhance digital engagement are yielding impressive results and improving the online shopping experience for customers.
- Membership Model Advantage: With a high proportion of sales from everyday essentials and a membership model, Costco has attracted consumers even amid market volatility, as evidenced by a 15% year-to-date stock price increase, reflecting investor confidence in its stable business model.
- Valuation Risk Warning: Despite Costco's strong business performance, its current price-to-earnings ratio of 53 may already price in expectations for robust earnings growth of 15%, prompting investors to be cautious of valuation risks that could lead to potential losses due to overvaluation.









