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Is being generous good for business? Costco CEO profits as he offers top pay, benefits
Houston Chronicle ^ | July 16, 2005 | Steven Greenhouse

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 ...


TOPICS: Business/Economy; Culture/Society
KEYWORDS: benefits; costco; walmart; workplace
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To: Non-Sequitur
And the Communist Chinese unions are thriving, thanks in part to Walmart.

Wal-Mart wouldn't earn a penny for the Chicom unions if US citizens didn't shop there.

People have far too much freedom in this country.

People should not be allowed to purchase products made in any country you don't approve of.

81 posted on 07/20/2005 2:24:20 PM PDT by E. Pluribus Unum (Drug prohibition laws spawned the runaway federal health care monopoly and fund terrorism.)
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To: zbigreddogz

I don't think the corporation does it, but Jim Sinegal as a person does.


82 posted on 07/20/2005 2:25:53 PM PDT by BikerNYC
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To: Blue Jays
Hi All-

When the latest Costco supermarket was being built in Union, New Jersey the patriotic ironworkers flew an American flag from the top when the main beams were erected. They also displayed a small Christmas tree on the structure in mid-December.

Costco managers immediately asked that both the American flag and the Christmas tree be removed so as not to "offend" the multi-cultural residents of the neighborhood. It created quite a buzz in the NY/NJ area with the Costco weasels eventually backing down from their absurd and cowardly demands.

I've never shopped there...but after that story was splashed all over the media I've never felt a need to set foot in any of their stores.

~ Blue Jays ~

83 posted on 07/20/2005 2:27:05 PM PDT by Blue Jays (Rock Hard, Ride Free)
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To: BikerNYC

I think they have a PAC that does liberal work too. Could be wrong.


84 posted on 07/20/2005 2:29:11 PM PDT by zbigreddogz
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To: Blue Jays

Wow what a difference. I was asked to make red, white, and blue ribbons for September 11th a couple of years ago to give away to our members. I'm glad I work at my warehouse and not that one!


85 posted on 07/20/2005 2:30:39 PM PDT by P-Chan Penny (Eat a toad for breakfast.... it's the worst thing that will happen to you all day!)
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To: Mase
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?

Costco and Sam's Club look like they service the same market from where I am sitting, though I would have to say the Costco's merchandise is notable more upscale. Here in Cali Costco has trounced Sam's Club building two or three new stores in a perhaps 15 mile radius of where I live, while the sole Sam's Club pulled out years ago. I don't know if Walmart is entirely deserving of it's shoddy image, but they certainly bear some responsibility for people's perceptions.

My perception is Walmart's/SAM's Clubs are dirty, cluttered, and cheap. This may go over well in some places, but people prefer a more upscale shopping experience in the land of half-million dollar median priced homes.

Not to mention Costco has giant all beef Kosher hotdogs AND a Soda for a $1.50 including Tax and cheap gas. ;-)

86 posted on 07/20/2005 2:41:14 PM PDT by Smogger
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To: Ace of Spades

>> Yeah, but for stuff like soda and paper towels, stuff that lasts forever, they're a godsend.

Also great if you own a freezer.


87 posted on 07/20/2005 2:47:46 PM PDT by PhilipFreneau ("The heavens declare the glory of God; and the firmament sheweth his handywork." -- Psalms 19:1)
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To: Smogger
I don't know if Walmart is entirely deserving of it's shoddy image, but they certainly bear some responsibility for people's perceptions.

With 3,600 stores in the U.S. alone Wal-Mart undoubtedly has some stores that are better than others. But, with 136 million people shopping at their stores every week, those perceptions can't be hurting them too much.

Not to mention Costco has giant all beef Kosher hotdogs AND a Soda for a $1.50 including Tax

At Sam's you can get a brat with sauteed peepers and onions and a soda for $1.69 including tax. Rolaids are also available at a great price.:)

88 posted on 07/20/2005 3:04:30 PM PDT by Mase
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To: Mase
peepers = peppers

Sauteed peepers??!! What the......

89 posted on 07/20/2005 3:05:38 PM PDT by Mase
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To: Pure Country
If only you could freeze lettuce or bananas...

Don't know about freezing lettuce, but you can certainly freeze bananas. When ripe, simply peel them, put 'em in a freezer bag and in they go. I don't know how long they will keep like that, but I've never had one go bad. No, you probably don't want to pull one out and eat it like you would a regular banana, but there are many things you can do with it. For example, add a frozen 'nana to a cup of milk and blend for about 20 seconds. You'll have an instant frothy banana milkshake that is delicious and nutritious. I have one about every morning with protein powder, and sometimes add some other fruit too, like some berries of some sort. Frozen bananas can also be used in baking, such as making banana bread. You might want to use the ripest ones for that. Just try the shake. You'll be amazed at how good it tastes.

90 posted on 07/20/2005 3:08:42 PM PDT by GLDNGUN
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To: jimbo123; Ace of Spades
LOL!

Note to Ace of Spades, I don't have to pay a membership fee to Wal Mart and Wal Mart has one heck of a lot better product mix.......

Comparing my local Cosco to my local Wal Mart, Wal Mart seems to have at least 4 times as many workers.......and thats just a conservative estimate.....

So whats my point you ask? Wal Mart offers more jobs and more products per store in any given community than Cosco.......

91 posted on 07/20/2005 3:23:36 PM PDT by Hot Tabasco (Too many idiots, too little time to deal with them all......I'll just shoot what I can.)
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To: Mase
At Sam's you can get a brat with sauteed peepers and onions and a soda for $1.69 including tax. Rolaids are also available at a great price.:)

The polish sausages at Costco are the same price as the hotdogs, that's a $1.50 including tax. I'll take the more upscale shopping experience for my money, and if he wants to pay his employees well so much the better.

92 posted on 07/20/2005 3:24:51 PM PDT by Smogger
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To: Hot Tabasco
Comparing my local Cosco to my local Wal Mart, Wal Mart seems to have at least 4 times as many workers.......and thats just a conservative estimate.....

An absurd comparison since it's SAM's Club the competes more directly with Costco. As for Walmart Target is a heck of a lot nicer, with much better mechandise. I'll even goto to K-mart who has cleaned up their stores a lot before I step foot in cluttered Walmart.

93 posted on 07/20/2005 3:28:10 PM PDT by Smogger
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To: Non-Sequitur
Costco shares up 10% over the last year, Walmart shares down 5%.

wonder if that has anything to do with the Rove like media blitz against them .......

94 posted on 07/20/2005 3:28:42 PM PDT by Hot Tabasco (Too many idiots, too little time to deal with them all......I'll just shoot what I can.)
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To: Non-Sequitur

What is the Price/Earnings multiple for each company and how has that multiple changed over the past couple of years?


95 posted on 07/20/2005 3:32:52 PM PDT by Tom D. (Beer is proof that God loves us and wants us to be happy. - Benj. Franklin)
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To: Smogger
An absurd comparison

It not an absurd comparison since Ace of Spades chose to compare Costco to Wal Mart.........I merely countered his argument. There was not one damn thing in his statement relevant to Sams Club so don't even bring that into the mix......Learn to Read!

96 posted on 07/20/2005 3:34:51 PM PDT by Hot Tabasco (Too many idiots, too little time to deal with them all......I'll just shoot what I can.)
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To: jimbo123

This guy supports all radical RATs including Patty Murray and McDermott, two of the most far left RATs anywhere. The leftist tilt of this guy was even more obvious prior to the election, when Costco book tables turned into political statements, 95% were anti-Bush books. They still have both Klintoon books and tapes available. Disgusting!


97 posted on 07/20/2005 3:38:36 PM PDT by Paulus Invictus
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To: Hildy

"I just moved to Bullhead City, AZ from San Diego."

What is it today over by the beautiful Colorado River? About 120 in the shade?

It was 84 across the street from the ocean, in Orange County. Hottest in years.


98 posted on 07/20/2005 3:44:42 PM PDT by truth_seeker
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To: BikerNYC
I think I read somewhere that economists claim that we need a permanent pool of unemployed workers of roughly 5% to help keep labor costs in check.

Why do you think they say that? When unemployment went lower than that a few years ago without inflation, they couldn't explain it.

Unemployment and how much people are paid should be determined by the market.

99 posted on 07/20/2005 4:19:52 PM PDT by Moonman62 (Federal creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it)
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To: Moonman62
Unemployment and how much people are paid should be determined by the market.

I agree, but when you have an oversupply of labor, labor is cheap.
100 posted on 07/20/2005 4:24:04 PM PDT by BikerNYC
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