Shares of Costco (COST) - Get Report are up 1.4% Monday after the members-only retailer was upgraded to buy from neutral by Citigroup analysts. 

"I've been waiting to hear a positive story about the company's prospects of accelerating same-store stores," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment. Costco is an AAP holding.

Food deflation will be eliminated within six months, something that will benefit both Costco and Kroger (KR) - Get Report , Cramer said. When gasoline price deflation stops, it will also be a big benefit to the companies, he added. 

Costco's co-branded credit card with Citi (C) - Get Report , another AAP holding, is doing "very well," Cramer explained, and its online business has improved. 

But there's always Amazon (AMZN) - Get Report  lurking in the background but unlike traditional retailers Costco's unique membership model allows the company to maintain low prices and unique products for its customers.

This will give Costco a chance to not only survive but do well in a world dominated by Amazon, Cramer concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had a position in COST.