Costco has a problem in China, but it has nothing to do with tariffs, CNBC’s Jim Cramer said Friday.e problem is Shanghai, a city of nearly 25 million people, has only one Costco store, the “Mad Money” host said.
Pair it with Costco’s ability to deftly handle tariffs in the U.S.-China trade war, and it “sounds to me like a terrific investment thesis for owning Costco’s stock for years and years to come,” Cramer said.
When the wholesale chain opened its Shanghai store in August, overwhelming crowds forced it to shut down early. Signs near the store warned there may be a three-hour wait to park.
Costco’s initial entrance into the Chinese market came in 2014, when it opened an online store on