How Costco Became the Anti-Wal-Mart – New York Times
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. He rejects Wall Street’s assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street’s profit demands.
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.”
Damn skippy! I certainly wish more companies would realize this – take care of your employees, and they’ll take care of your business!
I also like that Costco is “blue”, and donates to Democratic candidates, but really, I shop there because they take care of their employees. I don’t shop where employees are unhappy (listening yet, Albertsons, Ralphs and Vons?) When I got my MBA, it was pretty much drilled into me that you take care of your employees, since they are really all that makes the difference in your business. WalMart had a huge advantage in size, but they have proceeded to destroy their business by not caring for their employees. I won’t even step foot into one any more.
All of us have to start caring about where we shop, and how people are treated as employees. We need to be aware where the goods we buy come from and how they are produced. It isn’t just about price. And that is the failure of our economic system right now. Price doesn’t contain all the information we need to make a responsible purchase. Real prices include the social costs as well. If Walmart’s employees have to be subsidized by public programs because they aren’t paid enough, that’s not a good use of my tax dollars. Shopping at Walmart means supporting billionaires getting richer by using our dollars to enrich themselves at their employees and our expense. It may not show on the receipt you pay that day, but it shows in the way our society slips further and further into economic imbalance. I’m going to shop at companies that take care of their workers, not the ones that take advantage of them – and of me.
7 Responses
yeah, costco rocks. it’s fascinating to read more about all they do for their employees!
Although I hate to admit it, I know first hand how horribly Wal*Mart treats its employess: Troy and I both worked there 15 years ago, and his mother worked there until recently. They berated us in front of customers and forced mandatory all-nighters after already working a full day (without any overtime compensation). Troy’s mom was often often not relieved for breaks and recieved the run-around whenever she tried to sign up for health care. When she finally did get signed up, everything she submitted was denied. It goes on and on.
Although we rarely need items in the quantities sold at Costco, we keep our membership current and shop there whenever we can for the very reasons you mentioned above. And we stay far, far away from the evil W.
Costco doesn’t offer many choices, though. You can have one brand of tuna. You can buy one brand of crackers. Etc.
Costco is also a membership store. Should all other stores charge for membership if it would lead to higher wages and benefits?
I’m amazed that the liberals don’t like Wal-mart. WMT provides cheap goods and services to the segment of the population that consists mostly of Democrats: The poor. $4 prescriptions. Eyeglasses. Groceries. Household items. These goods are more affordable at WMT than anywhere else, which is a good thing for folks on limited budgets.
Muckdog, see D-Man’s comments. I also suggest you get a copy of “The Walmart Movie” and watch it. Check out the bunkers built by the Walton family, along with their mansions. Maybe you’ll get some understanding of where “the liberals”, whoever they are, are coming from.
Having to buy cheap crap is not the same thing as being treated fairly.
“The poor”, whoever they are, are not poor by choice. They are poor because they lack the opportunities that you seem to have had. And stop thinking of people by label and class – you’ll begin to develop some connection with others, instead of just seeing them as “other”.
Here’s my 2 cents: read Nickel And Dimed.
I tend not to shop at the big box discount stores.
I can’t agree more if I tried. I am a shareholder of various companies in the NYSE and NASDAQ. It NEVER ceases to amaze me at how -across the ENTIRE country- every company will screw it’s employees to make an extra penny in earnings for me, the shareholder. I have seen healthcare expenses reduced to ridiculously pathetic plans, I have seen 401(k) matching dissolved and I have seen people working countless hours of unpaid overtime WITH any personal gain (except keeping their job). All of this is done to make me, the shareholder, an extra whopping 15 cents on the share price.
Yes, American workers, as someone who owns less than 100 shares of your company, I am considered more worthy than you and your peers who keep the company going. It is already too late for this round of “management” to figure out that taking care of your people let’s them take care of your company. Instead, American business has learned to take care of their share holders and themselves to the detriment of the workers.
At some point in time American business changed their top priority from making a product to making a profit at any cost.
why do you guys like to shop there??
lol I need your help and feedback on this.. i’m doing a stock market project. can you please help me about the Costco Company??