Costco vs. Walmart - The Life and Thoughts of Zach
Aug. 20th, 2004
12:36 pm - Costco vs. Walmart
Here's a cool article from that bastion of progressive politice Business Week. The article explains how even in the world of Big Box big business retail, companies are able to be more productive, have more profits, sell more product, etc if they pay their workers a higher wage than Walmart.
It seems that by every proportional metric imaginable Costco which pays a higher wage is able to beat Sam's Club (the Walmart unit with which it directly competes). Costco has way fewer employees but moves almost the same volume. Costco makes more profit per employee. Costco makes more profit per square foot of store space.
Higher wages simply mean more efficient and dedicated workers and that really translates into good business. A lot of us could have told you this a long time ago but it seems that Wall Street still doesn't understand it, despite the numbers.