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Costco in the NYT

Although the Costco website could use some help, Costco is doing lots of things right within the organization. From the NYTimes today: How Costco Became the Anti-Wal-Mart.

Excerpts:

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."
...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."

Thanks, Mike Krypel!


1 Comment:

Jonathan Lord — Jul 27, '05 — 1:01 AM

The biggest issue with their web site is that you cannot search for product numbers to decipher the product descriptions on their receipts from the warehouse. Their excuse is that they don't sell all the items on the web in the warehouse and vice versa. I can understand that, but why do they prevent me from having a good experience when I need to find out what item number "123456789 LG EG 2CTN" is. I always get a stock answer from web tech support and end up calling the warehouse and asking what item 123456789 is.


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