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 ...
Ok, you are not sick! :-)
Thanks, I feel better already! ;-).
The whole article is available at How Costco Became the Anti-Wal-Mart
Are we talking about Teresa Heinz Kerry Ketchup? Talk about funding communists!
Actually, I'd say this statement tells one of three stories: 1) Costco stock is overpriced; 2) Wal-Mart stock is underpriced; or 3) Costco simply has more growth potential because Wal-Mart already dominates the retail market in many geographic areas.
"Yes, COSTCO should change its name to COMMIE-CO.... "
If delivering goods at a reasonable price, while paying workers a decent wage is commie, call me a commie.
The Costco closest to us has terrible produce and is dirty and smelly. Shopping there is like shopping at a Wal-Mart in a bad area of New Orleans. We maintained our membership there for two years, hoping they would build closer to us. They haven't. Probably because there is a new Sam's Club and a BJs already in the area. Then I learned about Costco's management's leanings toward RATS. We quit shopping at Costco. The Sams Club here has better produce. The BJs has very expensive produce, and it's not the best quality. We go to Sams for produce and other items. We go to BJs because they have a bigger variety of meats.
"What I also like about Walmart is they have the audacity to sell Christian books - Bibles etc.! "
Do they sell dictionaries? If they do, would you look up "allot" for me? It's not in mine.
2. You make 2 cents a piece selling 5 million widgets to Wal Mart.
If I have to make substantial investments that increase overhead to supply Walmart, and that makes me dependant on Walmart's business to survive, then it may not be such a good deal. In a sense, Walmart now owns my business and is in a position to dictate terms to me.
"The key word is possible. ...
This balloon will explode, but not without a lot of damage to the pocket books of ignorant investors and stupid banks."
Interesting. Do you know Costco's business intimately? Do you know for a fact that Costco is exceeding the highest possible wage for workers? You have their books? You know all of this?
Or... do you just assume that workers need to be paid the bare minimum? Is it possible that you feel anyone who is not a business owner doesn't deserve a decent wage?
Ditto to that!
"Folks, Willie Green hates Wal-Mart and loves Costco.
That should be your clue that Wal-Mart is better."
Wow, talk about flawed logic. Someone talked about the "dumbest post on the thread". I nominate yours.
"I think it is sick for someone who claims to be a conservative to go around and say Republicans have not heart."
I count that as a nerve hit.
It wasn't said that all republicans have no heart.
But, when it comes to employee relations, republican business owners do have a tendancy to be less than caring. So, I guess I'm sick too?
"Geesh, of all the ridiculous things to be concerned about ... spelling ... the truth is you don't like what I said, so what does the mindless do? Pick on something idiotic - like spelling."
Actually, I didn't have a problem with what you said. And the fact that I actually care about grammar and spelling makes me mindless?
And your incorrect usage of a non word makes you... ?
"Perhaps you need to pedal over to Walmart and get one of those dictionaries. There should be a big selection right now since kids often buy them when going back to school."
You seem to be very angry. Interesting how people get so wound up over things. I imagine you're given to road rage too.
Yes, I was mistaken, but so were you. You said "allot", and in that context, you were trying to say "a lot". To make it "crystal clear" for you:
allot - distribute: administer or bestow, as in small portions;
a lot - a dead metaphor, dull when spelled correctly, worse when misspelled alot. Passable in conversation as a substitute for much or many, it is better avoided in writing.
Allot is a word, but the context threw me. Your use of allot is at best a malaprop.
Does Wal*Mart carry liberal political books?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.