Macquarie cam out with an interesting piece on Costco. Some key points: - Costco price leader in branded goods, Aldi in Generics - Costco will have small market share but force repricing at majors and crimp margins. Campbells Cash & Carry (Metcash) will fare worst. - Could have ~15 stores in Australia. Rouse Hill (2010) first in Sydney. - Avg spend per visit to Costco something like $170 (quite high).
My opinion is that WES is fairly priced at these levels.
