http://www.boston.com/business/articles/2004/07/25/rivalry_between_wal_mart_costco_also_extends_to_national_politics/Rivalry between Wal-Mart, Costco also extends to national politicsBy Michael Forsythe and Rachel Katz, Bloomberg News | July 25, 2004
WASHINGTON -- Executives at Wal-Mart Stores Inc. and Costco Wholesale Corp., competitors in the $76 billion US warehouse-club market, have taken their rivalry to a new level: national politics.
Wal-Mart, the world's largest retailer and owner of Sam's Club warehouse stores, gives more money to Republican candidates than any other company. Its top three managers, including chief executive H. Lee Scott, donated the individual maximum $2,000 to President George W. Bush, and Jay Allen, vice president for corporate affairs, raised at least $100,000 to reelect the president, earning him the Bush campaign's designation of ''Pioneer."
Wal-Mart -- two-thirds of whose 3,580 stores are in the ''red states" that voted for Bush in 2000 -- is backing White House policies on everything from trade to limiting overtime pay.
Costco chief executive Jim Sinegal, 68, is a Democrat who says Bush's $1.7 trillion in tax cuts unfairly benefit the wealthy. He opposed the Iraq war and supports Democratic Senator John Kerry of Massachusetts for president. And he's the only chief executive of a company in the Standard & Poor's 500 index to donate money to independent political groups formed to oust Bush, Internal Revenue Service records show.......
Issaquah, Wash.-based Costco offers comprehensive health insurance to most of its 78,000 US employees, making it eligible for Kerry's plan, said Kerry's top domestic policy adviser, Sarah Bianchi, 31. That may cut 10 percent, or $35 million, off its annual healthcare premiums.
Costco wouldn't have to raise salaries with Kerry's proposal to increase the minimum wage to $7 an hour, from $5.15 now. It already pays hot-dog vendors as much as $16 an hour, and the lowest wage it pays is $10 an hour. That's higher than the $9.96 average wage paid at discount stores bearing the Wal-Mart name.<<<<<more>>>>>
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