Costco announced that it has cut its planned capital expenditures for fiscal 2003 to between $900 million and $1.05 billion, or roughly what it spent in 2002 (which was $1.04 billion).
Previously, it had planned to spend as much as $1.25 billion in 2003.
Previously, it had planned to spend as much as $1.25 billion in 2003.
- KC's View:
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Somebody said to us the other day that the problem was that everyone got used to operating in a Clinton economy, and that now, once again, we have to get used to operating in a Bush economy.
That’s probably something of an overstatement…not to mention a minority opinion among many of MNB’s users.
But it does illustrate an attitude that could become more widespread if the economy doesn’t improve…if companies like Costco continue to cut back on their capital expenditures…and if anyone from that side of the aisle is able to make the argument persuasively.
Expect to see more of such discussion in 2003, as the 2004 presidential election gets closer.
