Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

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
Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 261-263 next last
To: JeffAtlanta

Heinz does make the best ketchup. Hunts is terrible.


41 posted on 07/22/2005 7:55:41 AM PDT by NotSoFreeStater
[ Post Reply | Private Reply | To 39 | View Replies]

To: Pukin Dog

You should really try Costco's Kool Aid PD. It rocks. Great taste, less filling AND a solution to the Social Security mess all in one. Jim Jones gave it a thumbs up !!!!


42 posted on 07/22/2005 7:55:57 AM PDT by kylaka
[ Post Reply | Private Reply | To 27 | View Replies]

To: Willie Green

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

I've never been to a Costco, but go to my local Sam's often and the stuff they sell there is mostly name brand stuff in bulk. They have a private label and in most cases, it is as good as the named brand stuff. And you can beat there prices on meat.





43 posted on 07/22/2005 7:56:48 AM PDT by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: Pukin Dog; Paul Ross; hedgetrimmer; oceanview; jpsb

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




..so much for love of country.


44 posted on 07/22/2005 7:56:58 AM PDT by superiorslots (Free Traitors are communist China's modern day "Useful Idiots")
[ Post Reply | Private Reply | To 27 | View Replies]

To: The South Texan

Regardless of their political leanings, it sounds like Costco is doing a good job participating in Capitalism. If they can make a profit while paying their workers well, it will go well for them. They will have less turnover and their employees will have more job satisfaction. I applaud their business practices (while I disagree with their politics).

Gum


45 posted on 07/22/2005 7:58:09 AM PDT by ChewedGum (aka King of Fools)
[ Post Reply | Private Reply | To 36 | View Replies]

To: TaxRelief
I have mixed feelings about the Costco versus Walmart thing. There aren't any Costco's where I live, so it's not a shopping issue. I don't frequenct Walmarts, but shop there on occasion.

Sam Walton was a billionaire who drove an old beat up pick up truck. To me, that is just plain "cheap old b@st@rd" behavior, and not to be admired. I've done some business (very little) with Walmart as a buyer of our services, and I can tell you, that cheapness and "wring every last penny out of your suppliers and employees" mindset that Walmart started now permeates factories and businesses of all kinds. It also makes employees and suppliers bitter, for good reason. America was made great due to more things than just raw greedy capitalism. Christian principles should underly that capitalism, and the realization that people should be able to make a decent living by working. "The workman is worth his wages" as the Bible says.

I vote conservatively, but if Republicans would realize that there would hardly be any Democrats if they showed a heart and some generosity to employees and suppliers, the world would be a lot better off. The sad part is, country club Republicans WILL continue to drive working people to the Democrats, due to the same kind of cheap, greedy b@st@rd mindset that Sam Walton exhibited by being a billionaire driving an old beat up pick up truck.

I will admit, for all I know, Sam Walton may have been a Democrat. I just know from personal experience of working for both 'Pub's and conservative 'Dem's, I'd rather work for the conservative 'Dem's. Not much of a point to all this I guess, because greedy b@st@rds come in all shapes and sizes, but I do wish that people could achieve more of a balance, being capitalists without being Walmart greedy, being generous without being Costco liberal commies.

46 posted on 07/22/2005 7:59:01 AM PDT by badbass
[ Post Reply | Private Reply | To 1 | View Replies]

To: TaxRelief

So if Costco's stock price has risen 10% in the last twelve months(and beating WM) at the same time giving their employees respectible wages and decent health care coverage what is wrong with that?


47 posted on 07/22/2005 8:00:22 AM PDT by superiorslots (Free Traitors are communist China's modern day "Useful Idiots")
[ Post Reply | Private Reply | To 1 | View Replies]

To: superiorslots
Just out of curiosity, does Costco do what may big businesses do, contribute to BOTH parties?
48 posted on 07/22/2005 8:01:59 AM PDT by null and void (I don't use a tripod, only 50% of my photographs are good. They call me "The Half-Blurred Prints"...)
[ Post Reply | Private Reply | To 44 | View Replies]

To: IndyTiger

This is a "fluf" stock now, like google.

There is no substitute for good earnings, and there is no hiding a 23:1 price/earnings ratio.

Freepers please note: Don't put a nickle in this stock


49 posted on 07/22/2005 8:03:04 AM PDT by wrathof59 ("to the Everlasting Glory of the Infantry".........Robert A Heinlein)
[ Post Reply | Private Reply | To 21 | View Replies]

To: badbass

Good post. Very well said. I just think capitalsim is going to turn for the worse in this country before it gets better.


50 posted on 07/22/2005 8:03:06 AM PDT by superiorslots (Free Traitors are communist China's modern day "Useful Idiots")
[ Post Reply | Private Reply | To 46 | View Replies]

To: Gopher Broke

I love statistics... SouthWest Airlines, one of the ONLY profitable airlines in the country gave 82% of their political donations to Republicans, Best Buy donated absolutely no money to the Dems, Chik-Fil-A (yum :P) made 99% of their donations to GOP candidates.

This list is fun. :)


51 posted on 07/22/2005 8:03:08 AM PDT by Venerable Bede
[ Post Reply | Private Reply | To 17 | View Replies]

To: DCPatriot

The first Price Club (before Costco) I went to was near Herndon, Va., (DC area) It was wonderful, and then Costco took it over, and it continued to be great. They used to carry the best beef barbeque,but as with a lot of their products, they don't carry it anymore. I believe Costco main offices are in the Seattle area.


52 posted on 07/22/2005 8:03:15 AM PDT by cousair
[ Post Reply | Private Reply | To 14 | View Replies]

To: TaxRelief

WMTs stock first hit $50 a share, adjsuted for splits, in 1998, it is still at $50 a share today. Wall Marts reputation is quite poor for customer service, and it has taken a large PR hit for its ruthless tactics in terms of how it does business, not to mention how favorable towrds China they are. There is going to be a point where the bad PR of Wal Mart is going to take a toll, and shareholders will get even less value.

While CSCO are notel citizens themselves, and are also quite ruthless is how they do business, they have not sustained the big PR hits Wal Mart has, because usually Costco backs down when an "issue" becomes high profile, such as employment practices. That said, Costcos political practices are very bad.


53 posted on 07/22/2005 8:03:40 AM PDT by RFT1
[ Post Reply | Private Reply | To 1 | View Replies]

To: NotSoFreeStater

Sadly enough (from the sound of it) there's no Costco around here. Target is about a five minute drive away whereas you have to run a gauntlet to get to the nearest Wal-Mart. Our local hippies prevented it from getting built anywhere except on the other side of a thin bridge at the end of a road unfit for even a fraction of the traffic it gets beyond a dreadful intersection that takes about three light changes to get through. That settles it for me!


54 posted on 07/22/2005 8:04:38 AM PDT by AntiGuv (™)
[ Post Reply | Private Reply | To 40 | View Replies]

To: The South Texan
And you can beat there prices on meat.

That's precisely why I purchase meat elsewhere.

55 posted on 07/22/2005 8:05:11 AM PDT by Willie Green (Some people march to a different drummer - and some people polka)
[ Post Reply | Private Reply | To 43 | View Replies]

To: jimtorr

It's funny you mentioned Costco and Safeway. One week I had a list made up for things I wanted Safeway to deliver. Then a list of things I wanted from Costco. I eventually gave up and just bought everything from Costco that week.


56 posted on 07/22/2005 8:06:25 AM PDT by HungarianGypsy
[ Post Reply | Private Reply | To 11 | View Replies]

To: wrathof59
23:1 P/E means that this is a stock that any sober investor would trurn away from.

Why? Some of the best long term investments ever have been in stocks with high p/e's.

"Cult stocks" is what the dotcoms were in the 1990s, ie horrid long term investments.

Whatever happened to the internet, anyway?

57 posted on 07/22/2005 8:08:03 AM PDT by Moonman62 (Federal creed: If it moves tax it. If it keeps moving regulate it. If it stops moving subsidize it)
[ Post Reply | Private Reply | To 16 | View Replies]

To: ChewedGum
I agree and in fact I really can't stand going to Wal-Mart,(unless it's early in the morning) because the service (waiting in lines) is getting bad ala K-mart from a few years ago before they started closing stores, etc.

Truth to the matter is there would hardly be any commerce going on in this country if he based our purchasing decisions on the political leanings of companies or retailers. I remember talking to a pastor one time that refused to shop at K-Mart because at the time they owned Walden books which sold porno mags. But I guess he had no problem shopping at other stores that sold bear and liquor or obsence music.

The only time I truly shut the door on a retailer or company is if the owner(s) or top officers are the in your face type Rat or liberal. IF they keep their politics to themselves, I'm fine with doing business with them.
58 posted on 07/22/2005 8:09:27 AM PDT by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
[ Post Reply | Private Reply | To 45 | View Replies]

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."


Especially since Heinz still supports the Tides Foundation, last I knew.


59 posted on 07/22/2005 8:10:52 AM PDT by The Spirit Of Allegiance (SAVE THE BRAINFOREST! Boycott the RED Dead Tree Media & NUKE the DNC Class Action Temper Tantrum!)
[ Post Reply | Private Reply | To 15 | View Replies]

To: old and tired
The Costcos by me (King of Prussia and Montgomeryville) are always mobbed

Wonder if the new Sam's Club in Horsham will make a dent there. I heard it's a beautiful big store.

60 posted on 07/22/2005 8:10:56 AM PDT by Abby4116
[ Post Reply | Private Reply | To 24 | View Replies]


Navigation: use the links below to view more comments.
first previous 1-2021-4041-6061-80 ... 261-263 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson