Jim Cramer's Wall Street Confidential, 10/10/07: Costco Rocks

Recap of Jim Cramer’s comments on Wall Street Confidential, Wednesday October 10. Click on a stock ticker for more analysis:

Costco (COST), Wal-Mart (WMT), Kroger (KR), Safeway (SWY), Home Depot (HD), Sears (SHLD), Lowe's (LOW), Kohl's (KSS), J.C. Penney (JCP), Macy's (M)

When retail swoons, bears are quick to blame the sluggish consumer, but Cramer believes a more nuanced view is in order. Even though consumers don't want to shop at Wal-Mart, Safeway or Kroger because of boredom, or at Home Depot, Lowe's and Sears because of housing problems doesn't mean they don't want to shop. Today's consumer wants to be entertained, pampered and is looking for a bargain, said Cramer. Target and Wal-Mart no longer provide this experience, but Costco is fitting the bill because "it is a better place to shop." The consumer is not interested in Kohl's, J.C. Penney or Macy's, particularly the latter, since the stores have gone downhill because of the consolidation, said Cramer. While Kohl's is okay, its merchandise did not fit the weather. However, Costco is "a more exciting, treasure-hunt place to shop," Cramer said. "I think you're seeing a tiering here and the tiering has to do with execution, performance and fun to shop, not the consumer."

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