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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: wrathof59

A Costco was built not too far from my work about two years ago. They tore down about 10 acres of woods to put it up, right next to a residential development. Other than the opening day, I have never seen the parking lot more than half full. Usually, there are only about 30-40 cars in the lot. I can't imagine how they are making any money.


21 posted on 07/22/2005 7:35:17 AM PDT by IndyTiger
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To: TaxRelief

> At least we can say Sinegal puts
> his money where his mouth is

You mean he puts his shareholders' money where his mouth is.........


22 posted on 07/22/2005 7:38:05 AM PDT by MikeGranby
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To: randog
Get a life! They do not sell cheap crap! Is RoundUp cheap crap? All hardware stores, nursery's, Lowes, Home Depot, etc., sell it. Is it cheap crap there? Does the bottled water at WalMart give you cancer or contains sewage? Do the screws, nuts, bolts, and nails break or bend to easily? WalMart sells the same GE lightbulbs at the grocery stores - is it cheap crap in the grocery stores? They sell the same Avery paper products as Staples - is it cheap crap at Staples? They sell Kodak and Fuji film - is that cheap crap in other stores? They sell Everyready and Duracell batteries - is that cheap crap in other stores?

I can go on and on but you should get the message by now. Maybe not though, since you were so stupid to make a statement like that in the first place.

23 posted on 07/22/2005 7:38:06 AM PDT by 7thson (I think it takes a big dog to weigh a hundred pounds!)
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To: IndyTiger
Other than the opening day, I have never seen the parking lot more than half full.

Definitely not the case here. The only time you'll the a half empty parking lot at either of my Costco's is on a weekday BEFORE the place opens. I'm not kidding either. The Costcos by me (King of Prussia and Montgomeryville) are always mobbed.

24 posted on 07/22/2005 7:39:30 AM PDT by old and tired
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To: randog
When I think of Costco I think of bulk items...
Wal*Mart just sells cheap crap.

Costco's bulk items are good quality...
Sam's Club sells cheap crap in bulk.

25 posted on 07/22/2005 7:40:53 AM PDT by Willie Green (Some people march to a different drummer - and some people polka)
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To: TaxRelief
Wal-Mart is #1 in sales and growth. And they support conservative charities and causes.
26 posted on 07/22/2005 7:41:16 AM PDT by Extremely Extreme Extremist
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To: TaxRelief
I don't care if Costco is commie, I love the place and was there just yesterday for a HDTV for my master bedroom. Where else can it get a great TV, and 20 pounds of flap meat (skirt steak)in the same place. Add in a new Brita pitcher (2 Filters!!) and a 6-pack of Mobil 1 oil(only the best for the Hummer), and it was a good time.

I would shop there is Karl Marx himself was checking cards at the door.

27 posted on 07/22/2005 7:41:23 AM PDT by Pukin Dog (Sans Reproache)
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To: 7thson
Maybe not though, since you were so stupid to make a statement like that in the first place.

Wal*Mart sells cheap crap.

28 posted on 07/22/2005 7:43:40 AM PDT by randog (What the....?!)
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To: Willie Green

I'll buy that...;^)


29 posted on 07/22/2005 7:44:21 AM PDT by randog (What the....?!)
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To: TaxRelief

I quit shopping at Costco after I found out about their DNC contributions. Fortunately, we have an excellent Sam's Club that's every bit as good as Costco.


30 posted on 07/22/2005 7:45:28 AM PDT by GVnana
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To: Willie Green

My local Costco is clean, the two Wal-Marts define dirty. If that is the byproduct of communism it's of a variety I haven't read about.


31 posted on 07/22/2005 7:46:33 AM PDT by Goldsborough (Non Sibi)
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To: randog

Ive found that by the time I take defective goods back to Walmart I haven't saved any money any way.


32 posted on 07/22/2005 7:46:43 AM PDT by cripplecreek (If you must obey your party, may your chains rest lightly upon your shoulders.)
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To: jimtorr

That was a joke, right? No, I've actually shopped at the Kaohsiung Costco. Bought hotdogs, apple pies, and Quaker Granola Bars.


33 posted on 07/22/2005 7:48:19 AM PDT by zook
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To: Now_is_The_Time

"When you shop at Wal-Mart, your money goes to commies in China. When you shop at Costco, your money goes to commies in the US."

Actually Walmart and Costco get allot of their stuff from Communist China. In fact allot of it is the SAME stuff and Walmart is What I refuse to do is finance communism in MY country. What I also like about Walmart is they have the audacity to sell Christian books - Bibles etc.! Can you iamgine that! When was the last time you saw that in Costco?


34 posted on 07/22/2005 7:48:31 AM PDT by nmh (Intelligent people recognize Intelligent Design (God).)
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To: 7thson
Maybe not though, since you were so stupid to make a statement like that in the first place.

Given the subsequent response, ... {grin}

35 posted on 07/22/2005 7:48:53 AM PDT by newgeezer (Just my opinion, of course. Your mileage may vary. You have the right to be wrong.)
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To: Now_is_The_Time

"When you shop at Wal-Mart, your money goes to commies in China. When you shop at Costco, your money goes to commies in the US."

Which begs the question. Which group is more dangerous to the US? I say the commies in the US.


36 posted on 07/22/2005 7:49:26 AM PDT by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
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To: TaxRelief

Quote: even if he misses the irony that it is a capitalist society that allows him to foster his pro-worker environment.



So you want other american workers to earn less/slave wages so the goods you buy will be cheaper. Of course I'm sure you don't put yourself in the same category and take a lower wage.


37 posted on 07/22/2005 7:50:27 AM PDT by superiorslots (Free Traitors are communist China's modern day "Useful Idiots")
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To: Willie Green
Sam's Club sells cheap crap

I agree with you fairly often but, in this case, you have absolutely no idea what you're talking about.

38 posted on 07/22/2005 7:52:31 AM PDT by newgeezer (Just my opinion, of course. Your mileage may vary. You have the right to be wrong.)
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To: Paleo Conservative
Sam's might make the case that its ketchup is cheaper than Costco's, he said, "but you can't compare Hunt's ketchup with Heinz ketchup."

I'm not a ketchup connoisseur - is there really a difference? Is Heinz the Rolls Royce of ketchup?

39 posted on 07/22/2005 7:53:58 AM PDT by JeffAtlanta
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To: TaxRelief

I shop at Wal-Mart and Costco - they're right next to each other near my house. Both are always crowded, but Costco seems to do a better job of getting you through the checkout quickly. I wish Costco would stay open longer.


40 posted on 07/22/2005 7:54:31 AM PDT by NotSoFreeStater
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