Compared to Costco's ~33% private label share, PriceSmart is only at 19%. Growing its own branded offerings, especially in fresh food categories, represents a significant, untapped opportunity to improve margins and deepen customer loyalty.

The owner of Canada's only real estate trade publication is delaying U.S. expansion. He's choosing to solidify his monopoly and become the 'big fish' in his home market rather than becoming a 'little fish' in the crowded U.S. market where his brand has no equity and he'd face established competitors.

Following lessons from Sam Walton and military history, PriceSmart prioritizes owning real estate and distribution centers. This control over its supply chain is a critical moat that ensures stability, manages costs, and provides a decisive advantage in unpredictable environments.

To validate a membership fee that is high for local incomes, PriceSmart bundles valuable services like free vision, dental, and even basic doctor checkups. These perks, often expensive and hard to access locally, make the membership pay for itself.

Reflecting its founder's DNA, the company deliberately avoids squeezing suppliers for the lowest price. Instead, it partners with local producers to help them scale, building a reliable, long-term supply chain that grows with the business and fosters goodwill.

Contrary to typical advice to grow fast and be asset-light, PriceSmart expands at a deliberate, controlled pace. It focuses on owning its real estate, which provides long-term control, operational flexibility, and a more durable business model in its target markets.

Don't fear competitive "red oceans"; they signal huge demand. The winning strategy is to start in an artificially constrained niche (a puddle) where you can dominate. Once you're the biggest fish there, sequentially expand your market to a pond, then a lake, and finally the ocean.

Costco's business model is unique: it aims to break even on merchandise sales. This allows it to offer the lowest possible prices, building immense customer loyalty. The company's entire operating profit is derived from its annual membership fees, which represent only 2% of total revenue.

Instead of fighting for shelf space in traditional retail (a 'red ocean'), identify and create new, unconventional distribution points like hotels, airlines, or golf courses. This 'blue ocean' strategy builds a brand moat with less competition by reimagining where a product can live.