Yet some investors might remain concerned about competitive pressures. Costco gets a substantial amount of its revenue from grocery sales, and the need for perishable items pulls Costco customers into its stores week after week. Yet strong competition in the grocery space, both from traditional grocers and from the budding e-commerce side of the business, threatens to squeeze Costco. The warehouse giant's response is that it can still compete well on price, but investors should still watch closely to make sure that competitive advantage is enough to keep sales and profits moving in the right direction.