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 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.
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. ;-)