I think I will shop at Costco from now on.

[MSgt213]

JIM SINEGAL, the chief executive of Costco Wholesale, the nation's fifth-largest retailer, had all the enthusiasm of an 8-year-old in a candy store as he tore open the container of one of his favorite new products: granola snack mix. "You got to try this; it's delicious," he said. "And just $9.99 for 38 ounces."

<snip>

But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco's customers but to its workers as well.

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."

<snip>

Despite Costco's impressive record, Mr. Sinegal's salary is just $350,000, although he also received a $200,000 bonus last year. That puts him at less than 10 percent of many other chief executives, though Costco ranks 29th in revenue among all American companies.

"I've been very well rewarded," said Mr. Sinegal, who is worth more than $150 million thanks to his Costco stock holdings. "I just think that if you're going to try to run an organization that's very cost-conscious, then you can't have those disparities. Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong."

http://www.nytimes.com/2005/07/17/business/yourmoney/17costco.html?pagewanted=2&ei=5070&en=3c6520858e6e2855&ex=1122004800

[Fridays Child]

1. Good for you!

It's 100% blue.

We don't have an extra freezer for bulk-size purchases but we go there for a lot of non-perishables. And our local grocer is 100% blue, too, so we go there for everything else.

[shugah]

8. we bought a freezer

just so i could shop at costco! ;-)

costco rocks! they're blue, they're good to employees, and they have great stuff and prices! plus, with all the free samples it's like a free meal everytime we go. ;-)

[smtpgirl]

9. Got rid of my Sam's membership 10 years ago

I have shopped at Costco eversince

:)

[yorkiemommie1]

2. you'll love it

i get to reward myself w/ teriyaki turkey jerky every time we go, lol.

[Lorien]

3. I LOVE Costco

and Jim Sinegal ROCKS! The rest of the article goes on to say that costco's stock has gone up this year, while GOP Wal-mart's has been sliding. When we Buy Blue, everyone wins!

[merbex]

4. Me too

I'm also going to print this post and pass it around

Maybe even leave some in a bathroom at Wal Mart or in other strategic locations

[Tandalayo_Scheisskopf]

5. Translation:

Jim Sinigal regularly hoists two middle fingers towards Wall Street.

Wish we had a Costco around here.

[Lisa]

6. I think the Wall Street Journal was going off on Costco too ...

All kinds of dire predictions because Costco wasn't acting like a "real" corporation.


Great article, MSgt213. This part was especially interesting:

"Costco also has not shut out unions, as some of its rivals have. The Teamsters union, for example, represents 14,000 of Costco's 113,000 employees. "They gave us the best agreement of any retailer in the country," said Rome Aloise, the union's chief negotiator with Costco."

As opposed to taking their ball and going home (closing the store!) whenever one unionizes!

[gaia_gardener]

7. I wish there were more Costcos around

the closest one to us is a 9 hour drive.

I'm thinking my best option is to buy stock and show my support that way.

[koopie57]

10. we have a costco nearby

but when I walked in there I was so overwhelmed. There was so much coming at me. Is it a good place for small purchases? I would like to support this company, but maybe it is not the right place for me. I do support the small business in the area so maybe that is the best way for me to make my purchases to support our cause.

[MSgt213]

15. I don't see why you can't support small business as well as reward large

employers. There are of course many reasons why buying in bulk is not a good idea. But for example buying bulk items that you know that you will need anyway, have the space to store and won't go bad before you use it up makes perfect sense. Some things large corporations with their purchasing power can do better then the corner store and there will always be something your small local guy can do much better then the large corporation even if its only conversation and familiarly.

[walldude]

11. Been shopping Costco for years

I love how these people are shitting on Costco for treating their employees well. Gee, Mr Sinegal is worth over 150 million thanks to his Costco stock. Somehow I doubt the person ringing me up is worth that much. Costco is living proof that you don't need to be greedy to do well. Thats what everyone's problem is with this. Costco is fair and fair doesn't line the pockets of people who don't actually work for a living. This store shows the major difference between Liberals and Conservatives. Liberals believe that the people who do the actual work should be fairly compensated for it, while Conservatives believe you should be able to get your money off the backs of other people. They consider it good business to screw over the employees. This is why Public Education is not funded. The Right Wing wants people uneducated, and illiterate, otherwise they might have to actually *gasp* do something for themselves.

[Avalux]

12. I am addicted to Costco.

I can't go there unless I know I've got at least a couple of hours to kill - I love it. :thumbsup:

[musette_sf]

13. Ya voll, Herr Dreher! Arbeit Macht Frei!

"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.'"

... looks like the old German "ethic" of "Arbeit Macht Frei" is still alive at Deutsche Bank. I guess they loooooove them some Wally World, where the peasants' work makes the worthless Walton scions free.

With all my heart, I want to see the current rapacious US corporatocracy as empty, still and lifeless as the Deutsche Bank building now is on Liberty Street in Lower Manhattan, and for companies like Costco and guys like Sinegal to prove to the world at large and the financial community that doing right by your employees ultimately does right for everyone.

:patriot:

[theHandpuppet]

14. This will make you feel even better about shopping at CostCo

http://vfp92.org/CorporateDonors.html

Check the blue column under "Groceries/Food". A major Dem contributor.