General Discussion
In reply to the discussion: Costco's CEO explains how they make record profits: [View all]jmowreader
(50,524 posts)We can all agree that Costco treats its people well.
We can also all agree that Costco has low prices.
The tradeoff is, the stores are in the industrial part of town, they look like flea markets inside, they've been designed to not require very many employees or much energy to run, they're not open 24/7, and the one kind of socks they have come in a bag big enough to dress a football team. It also costs a customer at least $50 per year for the privilege of shopping there.
Then there's Nordstrom. They treat their people well, have great selection, and have beautiful stores in high-rent districts. The tradeoff there is a pair of pants costs $90.
And then of course is Walmart and its partners in crime Target, Kmart and Shopko. They have low prices, stores that don't look like dungeons and aren't in the wrong part of town, and great selection...but they consider their employees to be serfs and pay accordingly.
The way the OP's little cartoon was written, all Walmart would have to do to have record-setting profits is to double their employees' pay. There's a hell of a lot more to Costco's success than that.