Wal-Mart Stores, Inc. (WMT), Target Corporation (TGT): Smaller-Format Urban Stores? Not for Costco Wholesale Corporation (COST), Thanks.

I think in our business it’s just more difficult to do. We’d just as soon stay away from it. We have found where we do have multi-levels it’s considerably more expensive over a year’s time to run that business.

Smith: Especially with the huge pallets. I can imagine those just don’t translate very well.

Jelinek: Not only — they don’t go by escalator, but you have to take those huge pallets down by storage elevators. There’s a big expense to putting pallets in a storage elevator and going up and down.

Smith: Makes a lot of sense.

Jelinek: We’ve chosen to stay away from that as much as we can.

Smith: Seems like a good choice.

The article Smaller-Format Urban Stores? Not for Costco, Thanks. originally appeared on Fool.com and is written by Austin Smith.

Austin Smith has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Costco Wholesale (NASDAQ:COST).

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