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This next fact might shock you: In 2016, Amazon accounted for more than 40% of U.S. online retail sales. To be sure, Amazon (AMZN) is changing the game for retailers around the world, but isn’t taking over all of retail.

Just ask Costco (COST).

In the video excerpt above, from a recent institutional call on Best Idea Long Costco, Hedgeye Consumer Staples analyst Shayne Laidlaw explains why the $65 billion discount retailer is actually beating Amazon on price.

In a Hedgeye survey of 2,269 individuals, about 25% of respondents (523 for this particular question) had both an Amazon Prime subscription and a Costco membership. Of that 25%, about 63% said their “primary reason for shopping at Costco” was the “price to value,” selected over options such as “the experience,” “convenience” and “product selection.”

BOTTOM LINE: Amazon is absolutely disrupting the world of retail. But Costco is still thriving in spite of all the hype.