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How Costco Became the Anti-Wal-Mart
The New York Times ^ | July 17, 2005 | STEVEN GREENHOUSE

Posted on 07/22/2005 7:17:48 AM PDT by TaxRelief

... Some Wall Street analysts assert that CEO Jim Sinegal is overly generous not only to Costco's customers but to its workers as well.

Costco's average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam's Club. And Costco's health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco "it's better to be an employee or a customer than a shareholder."

Mr. Sinegal begs to differ. ...Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco's customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers' expense. "This is not altruistic," he said. "This is good business."

...Costco's stock price has risen more than 10 percent in the last 12 months, while Wal-Mart's has slipped 5 percent. Costco shares sell for almost 23 times expected earnings; at Wal-Mart the multiple is about 19. Mr. Dreher said Costco's share price was so high because so many people love the company. "It's a cult stock," he said.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Editorial
KEYWORDS: bjs; costco; costorules; jimsinegal; retail; samsmart; sinegal; walmart; walmartsucks; warehousestores
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To: TaxRelief
Costco is one of the largest contributers to the Democratic Party, particularly to the more socialist/communist leaning candidates.

So what? WalMart is a GOP contributor, but it also has put in place ultra-liberal policies to exclude any contractor which does not have a specific level of racial diversity. They are canning firms across the nation uless they have top management which has blacks, hispanics and women.

I will never shop at WalMart again.

141 posted on 07/22/2005 10:54:33 AM PDT by montag813
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To: Gabz

Here in Ohio, WMT is legendary for the amount of turnover that takes place, along with horrid customer service. It has gotten to the point that people are fed up with WMT that they instead go other places despite higher prices.


142 posted on 07/22/2005 10:57:32 AM PDT by RFT1
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To: nmh

Costco doesn't list all of their products on their web site, but they do list this:

http://www.costco.com/Common/Category.aspx?whse=BC&topnav=&cat=20109&hierPath=631*&Browse=


143 posted on 07/22/2005 11:00:47 AM PDT by A. Goodwin
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To: montag813

Do not forget that WMT was a key backer of the Clintons and Hillary was on its board of directors before 92. My guess isthat WMT would give a majority of its contributions to Democrats if they had a majority in congress.


144 posted on 07/22/2005 11:08:12 AM PDT by RFT1
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To: RFT1
Here in Ohio, WMT is legendary for the amount of turnover that takes place, along with horrid customer service. It has gotten to the point that people are fed up with WMT that they instead go other places despite higher prices.

This is why WalMart bashing, Microsoft bashing, etc. is so futile and misplaced. It ALWAYS happens the Same:

Big Company A gets too big for it's britches, customer service goes downhill.
Startup company B finds a "better way" and really catches on.
Company B replaces company A at the top of the hill.
Company B gets so successful that it grows to the saturation point.
Company B gets too big for it's britches, customer service goes downhill.
Startup company C finds a "better way" and really catches on...

The system always works itself out. No need to go on some FR anti-whatever-company crusade. Somebody will always come along and knock off the non-reponsive company.

145 posted on 07/22/2005 11:08:58 AM PDT by Warren_Piece (Large buttocks are pleasing to me, nor am I able to lie concerning this matter)
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To: montag813

Why are you spreading your bogus BS from thread to thread?

The info you are talking about was in regard to law firms, not suppliers and Walmart was only joing a LONG list of other corporations that have been doing the same for far longer.

There was a thread about it here with in the past 2 weeks.


146 posted on 07/22/2005 11:09:19 AM PDT by Gabz ((Chincoteague, VA) USSG Warning: Portable sewing machines are known to cause broken ankles)
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To: RFT1

As I said in my post, what may hold true in your area is not necessarily the same in other areas. And what you are describing does not take place in the area where I live and shop.


147 posted on 07/22/2005 11:11:48 AM PDT by Gabz ((Chincoteague, VA) USSG Warning: Portable sewing machines are known to cause broken ankles)
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To: Gabz

Yes, and then some.


148 posted on 07/22/2005 11:13:08 AM PDT by randog (What the....?!)
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To: randog

Why should I pay more for an identical product, made by the identical company, in another store if Walmart offers it at a lower price?


149 posted on 07/22/2005 11:18:09 AM PDT by Gabz ((Chincoteague, VA) USSG Warning: Portable sewing machines are known to cause broken ankles)
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To: Gopher Broke

Excellent website thanks. I will make sure we spend in the reddest of the red companies.

Go Ace and Go Walmart.


150 posted on 07/22/2005 11:22:00 AM PDT by eleni121 ('Thou hast conquered, O Galilean!' (Julian the Apostate))
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To: GBA
Amsoil? Never heard of it. I'll google it for information, thanks.
151 posted on 07/22/2005 11:25:53 AM PDT by Pukin Dog (Sans Reproache)
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To: Gabz
Why are you spreading your bogus BS from thread to thread? The info you are talking about was in regard to law firms, not suppliers and Walmart was only joing a LONG list of other corporations that have been doing the same for far longer.

That is not true. Law firms are the FIRST step in the business group's diversity objectives. WalMart will join them as subsequent groups are phased in. WalMart is the world's largest emplyer and has dealing with 2,300 law firms nationwide. I don't see how you not be outraged by this.

152 posted on 07/22/2005 11:33:15 AM PDT by montag813
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To: GBA
Hey, thanks for the tip on Amsoil. I will be making the switch.
153 posted on 07/22/2005 11:33:15 AM PDT by Pukin Dog (Sans Reproache)
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To: eleni121

Ace Hardware is only red because of a $300 contribution- thats it. The inclusion of companies with one dollar sign and some with two is laughable at best.


154 posted on 07/22/2005 11:35:19 AM PDT by NYorkerInHouston
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To: wrathof59

Cult Stock = Think Krispy Kreme


155 posted on 07/22/2005 11:38:54 AM PDT by jps098
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To: NYorkerInHouston

Home Depot is probably a better choice than ACE - both founders contribute to Republican causes right?


156 posted on 07/22/2005 12:03:22 PM PDT by eleni121 ('Thou hast conquered, O Galilean!' (Julian the Apostate))
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To: jps098

KKD, I watched it's demise daily, the CEO had franchise by-backs at $millions from his relatives, even as its expansion plans were cratering.

I mentioned KKD a couple of years ago on this board, stating that it was a shell game, IIRC a lot of Freepers thought I was nuts at the time LOL

Kmart Holdings is another contemporary Cult Stock, along with Google, both will crash and burn in the next 12-18 months.

Costco is not raelly a bad stock like these, but it's just peaking now, better to be selling now, buy low and sell high.

Most of the public thinks a stock is only good when it's expensive, lol


157 posted on 07/22/2005 12:08:51 PM PDT by wrathof59 ("to the Everlasting Glory of the Infantry".........Robert A Heinlein)
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To: eleni121

Yes,

And Home Depot contributed $448,500, of which 82% went to republicans- and not from what I could tell RINOs. Lowe's had a better rating, all of their money went to Republicans, but they only donated $6000.


http://www.buyblue.org/detail.php?corpId=83


158 posted on 07/22/2005 12:18:34 PM PDT by NYorkerInHouston
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To: x

you dirty, dirty person. lol


159 posted on 07/22/2005 12:19:59 PM PDT by rwfromkansas (http://www.xanga.com/home.aspx?user=rwfromkansas)
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To: montag813

Walmart is a private entity - they are free to choose who they do business with, on whatever grounds they wish to set.

Why should I be outraged by this?


160 posted on 07/22/2005 1:08:22 PM PDT by Gabz ((Chincoteague, VA) USSG Warning: Portable sewing machines are known to cause broken ankles)
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