How Costco Became the Anti-Wal-Mart

The New York Times ^ | July 17, 2005 | STEVEN GREENHOUSE

[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.

[WildTurkey]

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?

What proof do you have for your statement?

[WildTurkey]

Oooookaay. Did we hit a nerve or something, or are you just an @sshole?

No and No. I just called you out on your statement.

[badbass]

I thought we ironed all that out in posts 181 and 182. It was Brownsfan that brought it up again, not me.