Market Turbulence Won't Deter Strong Brands

The stock market's inevitable sell-off may not be as detrimental to certain companies that have a strong brand and everyday demand. Three such businesses are Costco Wholesale (COST), Walmart (WMT), and Unilever (UL). Their scale, brands, and essential products will help them weather the storm, even if the market gets shaky.

Costco is expanding its operations with new warehouses and investing billions in new buildings and remodels. Its business model attracts both budget-conscious families and higher-income shoppers who want a deal. In fact, during COVID times, Costco's same-store sales rose 7.7% even when fiscal 2020's sales were down.

Walmart is also adapting to the changing market with automation and digital tools that enhance its everyday low price promise. Its revenue growth and e-commerce sales are strong, with over half of U.S. e-commerce fulfillment volume moving through automated distribution centers. Walmart's huge customer base and broad store network provide a steady stream of repeat shoppers.

Unilever is simplifying itself into a more focused home, beauty, and personal-care business. Its volume-led sales growth of 4.8% in the first half shows that its portfolio reshaping will ensure more spending flows through its labels.