Costco Wholesale Corporation (COST) might be best known for offering quality merchandise at low prices while also offering top-notch customer service and cleanliness—all positives—but what often goes overlooked is that retailer’s ability to pick ideal locations almost without error. The biggest key to success in retail is location, and Costco is once again right on the money.

After completing a deal with the Carolina Development Corporation, Costco is planning on opening a location in Mount Pleasant, South Carolina, which is 20 minutes outside of Charleston. What makes this move so interesting is that according to The Post and Courier, Census Bureau figures indicate that Mount Pleasant is the fastest growing municipality east of the Mississippi River for cities with at least 50,000 residents -- Mount Pleasant has 80,000 residents. When you combine that fact with there be no direct competition in Mount Pleasant, you have an easy win.

Meanwhile, in Missoula, Montana—population above 71,000—some residents are complaining about Costco because of the traffic that will be created if it moves locations for more space, which it wants to do.

According to NBC Montana, local resident Debra Johnson said, “Costco said on an average day they have 10,500 cars and vehicles at their store in Missoula every day. So say half those people cut through Pleasant View, that's over 5,000 more vehicles that they will put through our neighborhoods.”

The key takeaway from that statement is that 10,500 cars and vehicles are at their stores every day. Therefore, while some residents are complaining, many of them are continuing to shop at Costco. In simplest terms, the local demand for Costco products is high.

Despite quarterly revenue and earnings increases of 2.20% and 1.60%, respectively, year over year, COST has slipped 6.16% over the past 12 months, but it does currently offer a dividend yield of 1.19%. The stock hasn’t been performing well in a bull market, which is absolutely a negative. On the other hand, the underlying business is strong and upper management remains savvy -- there is a correlation. 

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