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 ...
And their stock price is down roughly 20% over the last 5 years while Costco is up by almost 1/3rd. Whatever Costco is doing, the market seems to like it more than whatever Walmart is doing.
As long as their model is geared to part-time and first-time employees, many who are on their way to other careers, they will *have* to attract those kinds of numbers.
I make no value judgments here. I only say that their models are different and both seem to work. How can you argue with Wal-Marts success? You can't.
Let Costco try and accomplish what Wal-Mart has. No doubt they will have to change how they do business long before Wal-Mart will.
Costco is not expanding as fast as Wal-Mart, but I think, in the end, their business model will prove to be more stable.
Earnings growth is what drives stock value. As an investor, I would choose Wal-Mart for that very reason. They have just begun to grow internationally. They are kicking Carrefour's butt in Europe and, with all their cash, they will be able to acquire competitors - all resulting in continued growth.
It depends... For instance, I like the size of their jars of minced garlic and Miracle Whip...
Mark
Now, now, now, you know that any "union" in Communist China will be under the direct control of the Butchers of Beijing, and that any company that wants to do business in China must deal with those Butchers.
Your sophistry is so transparent.
The only thing I really care about is how he treats his employees. It's his money to do with as he wishes. You can find hypocrites on both sides.
Profits over principle, right? Better to do business with the Butchers of Beijing than the AFL-CIO.
Actually, I don't see much difference, other than the fact that the mafia-controlled unions are dying.
It gives a lot of money to dems.
Note to Ace of Spades: Who's #1? That's all that matters.
Wall Street doesn't like uncertainty. Wal-Mart has three new lawsuits filed against it every day.
They are experiencing slowing growth in both top and bottom line. This is why I included their capital spending as a percentage of cash flow stats in my previous post. Once those expenditures are curtailed, they'll buy back stock, increase dividends and pay down debt. The street loves those things and will reward them accordingly.
And yes, Costco support Rat causes. I'm glad there isn't a Costco in my area.
The company, Costco, does?
Well, I am willing to bet that the communist unions in China were mandated by the government.
And the Communist Chinese unions are thriving, thanks in part to Walmart.
They are. But that's OK with Walmart.
Wrong. Costco as a company doesn't support dem causes. Jim does. The only official causes Costco supports is Children's Hospital and United Way.
LOL - as opposed to making Lenin our god?
This must be some bizarro socialist FR website I'm posting on.
Yes.
Are you getting at something?
Sorry, most people don't see it that way because they feel it reflects on the corporation in general.
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