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Giantone · 07-12-2013, 08:21 PM

Walmart Pays Workers Poorly And Sinks While Costco Pays Workers Well And Sails-Proof That You Get What You Pay For - Forbes

Walmart Pays Workers Poorly And Sinks While Costco Pays Workers Well And Sails-Proof That You Get What You Pay For

A protest in Utah against Wal-Mart (Photo credit: Wikipedia)

Costco’s most recent quarterly earnings report reveals a fairly healthy eight percent rate of growth in year-on-year sales—including a five percent rise in same store sales. What’s more, with membership fees rising from $459 million in the same quarter last year to $528 million this year, it’s pretty clear that a significant number of customers are moving over to the retailer to do their discount shopping.
Meanwhile, Costco’s primary competitor, Walmart, saw an anemic 1.2 percent rise in sales, while other competitors such as J.C. Penny and Target TGT -0.01% experienced even greater disasters in their sales results.

In an identical economy, how do we explain Costco’s growth vis-à-vis the failures over at Walmart?
Here’s a crazy thought—might it have something to do with the fact that Costco pays nearly all of its employees a decent living (well in excess of the minimum wage) while Wal-Mart continues to pay its workers as if their employees don’t actually need to eat more than once a week, live in an enclosed space and, on occasion, take their kids to see a doctor?
And just in case the occasional Walmart employee finds a way to squeak by, the company has sought to put an end to that by cutting their employment roster by 1.4 percent, even as they increased their store count by thirteen percent.
The result?
Walmart service now pretty much sucks—and customers don’t like it.

07-12-2013, 08:21 PM	#115
Giantone Gamebreaker Join Date: Apr 2006 Posts: 14,590	Re: Solid Snake Hates: Walmart Walmart Pays Workers Poorly And Sinks While Costco Pays Workers Well And Sails-Proof That You Get What You Pay For - Forbes Walmart Pays Workers Poorly And Sinks While Costco Pays Workers Well And Sails-Proof That You Get What You Pay For A protest in Utah against Wal-Mart (Photo credit: Wikipedia) Costco’s most recent quarterly earnings report reveals a fairly healthy eight percent rate of growth in year-on-year sales—including a five percent rise in same store sales. What’s more, with membership fees rising from $459 million in the same quarter last year to $528 million this year, it’s pretty clear that a significant number of customers are moving over to the retailer to do their discount shopping. Meanwhile, Costco’s primary competitor, Walmart, saw an anemic 1.2 percent rise in sales, while other competitors such as J.C. Penny and Target TGT -0.01% experienced even greater disasters in their sales results. In an identical economy, how do we explain Costco’s growth vis-à-vis the failures over at Walmart? Here’s a crazy thought—might it have something to do with the fact that Costco pays nearly all of its employees a decent living (well in excess of the minimum wage) while Wal-Mart continues to pay its workers as if their employees don’t actually need to eat more than once a week, live in an enclosed space and, on occasion, take their kids to see a doctor? And just in case the occasional Walmart employee finds a way to squeak by, the company has sought to put an end to that by cutting their employment roster by 1.4 percent, even as they increased their store count by thirteen percent. The result? Walmart service now pretty much sucks—and customers don’t like it. __________________ ....DISCLAIMER: All of my posts/threads are my expressed typed opinion and the reader is not to assume these comments are absolute fact, law, or truth unless otherwise stated in said post/thread.