Here's Why Costco's Gas Pricing Strategy Is Good News for Shareholders

Costco Wholesale (COST +0.84%) uses gas strategically to attract and retain its members, offering prices roughly $0.20 to $0.30 per gallon below those of its competitors. Right now, my local Costco has gas prices near $3.60 a gallon, while many nearby gas stations are around $3.80. That said, the company often adjusts prices carefully -- hiking them quickly when costs rise, but lowering them more slowly when they fall -- to stay competitive while protecting its margins.On top of that, Costco is expanding it ...