Costco Wholesale Corp. (COST) shares fell over 4% late this week.
The stock closed Friday at $1,028.24.
This decline precedes Costco's Q3 fiscal 2026 earnings release scheduled for May 28.
Investors show caution as the stock trades near a valuation of 56x trailing P/E.
Rival Kroger's announcement of grocery price cuts intensified the downward pressure, triggering retail price war fears.
Sector jitters following Target's post-earnings meltdown also drove momentum investors to trim defensive retail holdings.