Monday, December 19, 2005
Why Costco Blows Away Wal-Mart: "Why Costco Blows Away Wal-Mart Although you've often read my thoughts about Costco on my Web site, it's been hard for me to find a good piece that sums up why I like their stores so much worth posting here. That is, until I discovered ABC News' revealing story about Costco (free text link below). Much of the story focuses on Costco CEO Jim Sinegal, treated like a celebrity among his admirers (me included) and, not surprisingly, his employees. In fact, Sinegal insists his company's identity hinges on creating and maintaining a 'first-name-basis' environment with everyone. Even down to the 'Jim' nametag he wears when visiting Costco stores. If you haven't been Costco, one of the unusual things -- besides great prices and selection -- you'll see there: Friendly people enjoying their work. What's more, Costco's turnover rate is five times lower than that of Wal-Mart and employees make as much 40 percent more an hour than at Sam's Club, Wal-Mart's warehouse counterpart. Talking about Wal-Mart, I finally had a chance to view the documentary Wal-Mart: The High Cost of Low Price. There is NO question in my mind that this company has many evil behaviors. I stopped shopping at Wal-Mart many years ago but one of my friends, Paul Pilzer, is a big proponent of them as the late Sam Walton was the person who helped propel him to fame as a national economist."