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 ...
I shop at both Sam's and Costco and you are right about the check-out time at Costco. They also have someone there to unload your cart at the check-out lane which is wonderful when you have heavy stuff--like the mongo-size Tide. They sell these freeze-dried liver treats that my dog is crazy about and their bakery oatmeal raisin cookies are the best I have ever had.
There's a bump for economic nationalism there!!! US commie better than ChiCom--BARF!!!!!
At least some money at wal mart goes to Bentonville, AR first.
And they sell Johnsonville Brats for $1.50 less than the grocery stores.
They may sell it CHEAP, but it's not crap.
I generally agree. Of course, I went to Starbucks this morning for coffee and on the side of my cup is their little quotes from people "The Way I See It". I had the lovely pleasure of reading a foolish statement from Julian Bond, board chairman of the NAACP. I wonder if they would have any comments from Rush Limbaugh or Sean Hannity?
Low level wages are not "slave wages". The phrase "slave wages" is an oxymoron. Slaves do not earn wages: by definition.
The P/E ratio of 23:1 speaks for itself. The Costco high-wage bubble is not sustainable.
What is the difference between a conservative Dem and a Dem?
Most conservative Dem's that I know, who have any sense, I forced to vote Republican nowadays. For example, Zell Miller (conservative Dem) versus oh, I dunno, Michael Moore (idiot modern day screaming liberal Dem). I don't know if these Dem/Republican labels work anymore.
The key word is possible. Exceeding the highest wages possible requires either (a) a pyramid scheme; (b) unsustainable debt; (c) book "tweaking" or (d) cashing in on over-inflated, unrealistic stock prices.
This balloon will explode, but not without a lot of damage to the pocket books of ignorant investors and stupid banks.
Thomas Jefferson paid wages to his slaves. Slavery is a reference to freedom, not wages.
Okay, let's try that again. ARE forced to vote Republican nowadays.
I won't get into the relative virtues of Costco and Walmart's. There's something to be said for both, as stores.
What's clear is that the media have run an enormous campaign criticizing Walmart as a demonic organization and praising Costco as a wonderful organization.
Who can doubt that this is typical MSM lies with a hidden agenda? They attack Walmart because it donates to Republicans, and they support Costco because it donates to Democrats. The real problem is not with Costco or Walmart, who are entitled to give to the politicians of their choice. The real problem is with the lying scum in the media, who manipulate the facts to support their leftist agenda.
This is obvious enough if you think about it, but even conservatives have been taken in by media propaganda. For example, they say that Walmart is unAmerican and sells only Chinese goods. I doubt whether Walmart sells more Chinese goods than anyone else, because cheap Chinese goods are everywhere. Walmart's real sin is supporting a Republican administration that the Democrats hate for keeping them out of power.
Giving their employees respectible wages and decent health care coverage no longer fits the "capitalist" mold.
True capitalists like WalMart hire illegals at below legal wages sometimes locking them in the buildings to work and all to line the shareholder pockets AND Costco isn't on the RNC list of false idols to worship.
No it doesn't. It means nothing without looking at other information such as future growth rate.
What happened to the dotcom ? 70% went belly up.
I'm talking dotcom stocks, remember when one share of yahoo was $250.00, yahoo still around but the morons who bought it high lost a boatful of money.
Google was trading at 300 a share a few weeks back.
Which stocks in the 90s grew into their high P/E? Everything I followed did exactly the opposite.
23:1 for a national retailer is too pricey for my budget, good luck
Buy low, sell high
What is BJ's?
I'm pals with two plumbers, both of whom refer to Charmin as "The Plumber's Best Friend".
It's too absorbent, swells up down the hole and gets them a lot of clogged toilet bidniss.
What are costco's prices?
"Just out of curiosity, does Costco do what may big businesses do, contribute to BOTH parties?"
I'm not sure, but I'd guess that's the case. Jim Sinegal definitely supports the Dims; however, I have a friend that works at their corp office and they said that some of the VPs are conservative as are many of the employees. Just because the big boss is a Dim - doesn't mean the rest of the company is. I think the same could be said for many corporations.
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