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 ...
Costco is one of the largest contributers to the Democratic Party, particularly to the more socialist/communist leaning candidates.
At least we can say Sinegal puts his money where his mouth is, even if he misses the irony that it is a capitalist society that allows him to foster his pro-worker environment.
Costco is all over Asia. I bet they don't pay $17/hour there.
"Costco is one of the largest contributers to the Democratic Party, particularly to the more socialist/communist leaning candidates."
THAT is precisely WHY I shop at BJ'S or Walmart because they contribute MORE to Republicans.
"Costco is one of the largest contributers to the Democratic Party, particularly to the more socialist/communist leaning candidates."
THAT is precisely WHY I shop at BJ'S or Walmart because they contribute MORE to Republicans. Plus their prices are BETTER.
I think the Times might be comparing apples to oranges here. When I think of Costco I think of bulk items--the infamous 20 gallon jug-o-mayonnaise and what have you. Wal*Mart just sells cheap crap.
Perhaps you are thinking of Cosco, a commercial arm of the Chinese Army. Not quite the same thing as Costco.
THAT is precisely WHY I shop at BJ'S or Walmart because they contribute MORE to Republicans.
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Yes, COSTCO should change its name to COMMIE-CO....
I know, I know. But I love it. I can't help myself.
I have been a Costco shopper since that store opened in my town. I love shopping there and they make it very easy on their customers. I despise the fact that Sinegal puts his money into the socialist DNC and their far left candidates, but I don't see that in the store itself. The book selections are from both sides of the politcal fence and they sell lots of both. I guess it comes down to matter over political veiws.
I like Costco. I don't have to go shopping for staples, such as bread and butter and cereal and cheese and toilet paper as often, the price is half what Safeway charges, and they have superior produce.
The Walmart by me is just not that clean, so I can't speak to their prices. But Costco's got better tools, and just better stuff than BJ's. Electronics I'd say is about 50-50. Better to check both places before buying. My wife tells me that BJ's has better every day food, Costco has the better party food.
Agreed on the apples to oranges comment - although comparing to Sams's Club might be more accurate. Walmart also employs lots and lots of people in huge as well as smaller stores all over the country. All that being said, I'm all for paying folks more money - and if they can do that and keep stock investors happy too then great. However, this weekend I'll probably still shop at Walmart because it's there and Costco isn't and even if it were I don't need giant jars of mayonaise.
The seafood salad is the closest thing to civeche I can find.
Never have enough Bounty paper towels and Charmin bathroom tissue...red seedless grapes...the latest DVDs...Morton's Pot Roast.
Sigh! I must get out more.
There is little love lost between Wal-Mart and Costco. Wal-Mart, for example, boasts that its Sam's Club division has the lowest prices of any retailer. Mr. Sinegal emphatically dismissed that assertion with a one-word barnyard epithet. 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."
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.
23:1 P/E means that this is a stock that any sober investor would trurn away from. "Cult stocks" is what the dotcoms were in the 1990s, ie horrid long term investments.
Costco is way overpriced. And nobody cannot defy the axiom "Buy low and sell high".
Want to see who which companies give to Republicans and which to Democrats? Check out this left-wing website:
http://www.buyblue.org
The Costco magazine that comes to your home, did a politcal story, quoting the BBC for one those issue articles that they run. I called the editor of the magazine to complain. I told him that not only was the BBC a disreputable source, the slant of the whole story was offensive to conservative shoppers. I told him that story about Michael Jordan giving money to liberal causes but refusing to put his name behind them, saying that Republicans buy shoes too. I told the editor that Costco would do well to adopt that same policy, that many shoppers do not like politics mixed with their shopping.
He was very responsive and has never run another political article.
There is one rule for the industrialist and that is: Make the best quality of goods possible at the lowest cost possible, paying the highest wages possible.
-- Henry Ford
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