Posted on 07/20/2005 12:54:46 PM PDT by Ace of Spades
ISSAQUAH, WASH. - Jim Sinegal, the chief executive of Costco Wholesale, the nation's fifth-largest retailer, crows about Costco's private-label pinpoint cotton dress shirts.
"Look, these are just $12.99," he said while lifting a crisp blue button-down inside Costco's cavernous warehouse store here in the company's hometown. "At Nordstrom or Macy's, this is a $45, $50 shirt."
Combining high quality with stunningly low prices, the shirts appeal to upscale customers — and epitomize why some retail analysts say Sinegal just might be America's shrewdest merchant since Sam Walton, the founder of Wal-Mart.
(Excerpt) Read more at chron.com ...
I just moved to Bullhead City, AZ from San Diego. Before I moved here I didn't like the mention of the name Walmart. But let me tell you, here in BHC, it's the only place to go. I love it. I know the arguments against it, but it makes our lives so much easier.
That's not the message here. They are two separate business models. With an average hourly wage of $17.00, how many first time job seekers get to work at Costco?
Wal-Mart pays a much lower average wage but provides huge opportunities for those entering the job market for the first time with limited skills.
They are just different. If Wal-Mart was so bad they would be experiencing problems attracting employees and then, maybe, their model would have to change. It's not happening though.
I also noticed that the author neglects to mention how many hourly employees at Costco have the opportunity to move into management. At Wal-Mart, 76% of all managers came from the ranks of hourly employees. No other company in the country offers that kind of upward mobility.
The pundits can elevate Costco above Wal-mart when Costco does $285 billion in annual sales, with 1.6 million employees, and has more than 5,000 stores around the world by utilizing this same model.
I agree. We are members of BJ's, Sam's and Costco and live near a Wal-Mart. I went through a brief time last year when I purchased at Wal-Mart. Just last week I saw that the apple juice was from China, but they communciated it in such a way that I could barely see that before I bought it. No more food and little else from Wal-Mart.
Costco, OTOH, is always so professional. If the lines are long, they open new ones. The employees are trained to resolve problems quickly. If they can't, there's always someone close who can. And they never hold up lines when that happens.
There merchandise is excellent. If we buy anything that they later discover is problematic, we get a letter telling us about it and how to handle the problem. Sam's is improving to compete with Costo, but it still doesn't have the quality of employeees as Costco and it shows. The new BJ's in our area has terrible employees and as a result, is almost always empty. We wonder how long it will last.
I agree with this article. When you pay employees and expect performance from them in return, you get it and customers notice it and return.
I hear there's this newfangled piece of technology called "a freezer" that might help you with that problem.
I'd have to boycott my in-laws...they love the Democrat Party too
I have to tell you that the three Wal-Mart stores near me (one is a Super Center, the other a Wal-Mart, and a Wal-Mart grocery store) are mediocre. The shelves are not stocked with the products and the parking lots are filthy. These Wal-Marts are not in bad parts of town either.
Costco always has their shelves stocked and they are spotless. I try not to think of the stores as being Republican or Democrat. If they have products that are of good value than we are okay with that. The Costco near us has superb meats and bakery items. No one even compares to them around here for those items.
Okay, you can flame me now.
The merchandise at Costco is of excellent quality. So I go to Costco, rude employees and all because their prices are good and their product is excellent.
I see your point, however, for $17 an hour, how many first-time job seekers does Costco have to take? Do they get lazy high school kids who slack off and steal from them, or do they get happy, motivated, loyal employees? And believe me, it makes a big difference, especially if you go into the Wal-Mart near me.
The point is, Wal-Mart could treat its employees better and still make money.
Your gratuitous Wal-Mart bashing: "Note to Wal-Mart. You don't have to screw over your people to make a buck."
As far as I know, employment with Wal-Mart is strictly voluntary.
If you know otherwise, please enlighten me.
If Wal-Mart employees are being "screwed," those employees are free to find other employment. It's the American Way.
Since you are so smart, you should start a company and hire them so you can pay them what you think they are worth.
And those would be?
Hold up, I'm still on the union thing. To suggest that employees could be treated a little better makes me a socialist union stooge? I never suggested the government step in. I just said Wally could do it if they wanted to.
Agreed. I don't approve of Costco's political activity, but I do like how it pays it's workers well and still manages to make money.
Agree with your comparison of Sam's and Costco. I shop at both although Sam's is a bit closer to my house. It seems that Costco has marginally higher quality of goods--especially fresh foods.
It would be more accurate to compare Costco with Sam's Club since both follow the same kind of business model. And Costco is apparently doing a better job at it.
It makes you an arrogant, know-nothing-know-it-all, just like most union thugs.
I repeat: if you know so much, why don't you start a company so you can be sure your employees are "treated a little better."
You forgot the only figure that really matters in business today. Costco shares up 10% over the last year, Walmart shares down 5%.
A little touchy, are we? Well, I understand. That's what happens when you make the Free Market your god. Wal-Mart becomes your church.
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