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Costco is quite reputable. It is totally improbable to me that they would be selling fakes.
But what is quite likely is that someone asked to look at the one in the case and while trying it on, did a switcheroo with the cheap-ass fake you saw. Thief gets the real watch, store is left with the fake, none of the employees know enough to tell the difference and the manager didn't take you seriously because he was certain their reputable supplier would not have shipped them a fake.
Unfortunately, this is the way some people do their Christmas shopping.
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