Analysts Criticize COSTCO for being too generous to employees and customers...

[MaxDSP]

used to work at Sams Club back in hs....management sucked, I quit in less than a year

 

[PlatinumGold]

there are 8 costco's within 50 miles of my house. the nearest one is 15 miles away, but with traffic conditions etc it would take me 35 minutes to get there.

 

[BoberFett]

Originally posted by: Eli
:thumbsup: to Costco. It's nice to see businesses that care.

Indeed. I just checked their website there's one about 8 miles from me, I'll have to go take a look around.

 

[ggavinmoss]

This is nothing new, analysts have been making this assessment of Costco for some time. Those that call for the slashing of employee benefits or raising of markups are thinking very much inside the box; there are other ways to keep up growth and sustaining revenue (having quality employees, loyal customers, etc.).

This sort of discussion is definitely the downside of a company being publicly traded. Ultimately, the board's responsibility is to make the best decisions for shareholders. These days, however, this means making myopic decisions to help meet a quarterly target...

-geoff

 

[psiu]

2 more good articles:

http://www.bizjournals.com/seattle/stories/2003/07/28/focus1.html

While Costco is said to compete with Wal-Mart Stores Inc.'s Sam's Club, and with third-place Northeast regional chain BJ's Wholesale Club, on a per-unit basis there is simply no competition. The average Costco store rings up $114 million in sales a year, while Sam's takes in just $64 million, BJ's $44 million. Costco is so much more efficient than Sam's that it earned some $6 billion more than Sam's last year, even though Costco had just 345 warehouses and Sam's had 525.

There's an old story they tell at Costco Wholesale Corp.: A Costco customer goes into one of the Issaquah-based chain's warehouses and sees Polo Ralph Lauren shirts that go for $60 retail selling for $37. The customer says, "I'll take four in white and one in blue."

A customer of rival Sam's Club sees the same display and says, "I don't care how good a shirt it is, I'm not spending that much."

"History is going to write that Sinegal and Brotman were the best merchandising duo since Marshall and Field or Sears and Roebuck," said Dick Outcalt of the Seattle consulting firm Outcalt & Johnson Retail Strategists. "They have created a long-lasting management culture that their job is never finished."

http://reclaimdemocracy.org/articles_2004/costco_employee_benefits_walmart.html

More of the same as the first article (Wall Street=retarded), ends with this:

Some longtime Costco fans say the company should stick to its generous wages and benefits. "Happy employees make for happy customers, which in the long run is ultimately reflected in the share price," says John Bowen, an investment manager in Coronado, Calif., who has held Costco shares for eight years.

That actually sounds like a good investment manager!

found in the wikipedia entry for costco

 

[ToeJam13]

Originally posted by: sygyzy

Originally posted by: habib89

Originally posted by: ToeJam13
Regardless, I love to shop there. Some of their non-food items are from China, but I think that's just part of the games these days. My understanding is that they don't go out of their way to buy Chinese goods like Wal-Mart does.

what's wrong with buying chinese goods? or do you mean that by buying chinese goods they're ignoring the plethora of usa manufactured goods? oh wait, i don't think those exist anymore...

It's pretty obvious what a person means when they make that sort of comment.

Wrong.

A good store will purchase goods at a low cost from respectable countries. Japan, Taiwan, South Korea, Canada, Sweden, etc... are all such countries that make good product at low prices while treating their people fairly well. Costco buys product from many of these countries, which I like.

I do not feel that China treats its people well, nor do I think they treat the US well.

Regardless, am I a USA champion? No. My car is Japanese (Lexus), with my last three being German (Audi) and American (Chevy, Buick). My TV, DVD player and sat receiver are Japanese also (Toshiba). My computer monitor is Finnish (Nokia).

If a US built product is of similar quality for similar or slightly higher price, I might lean towards it over a foriegn product. However, I won't buy a product just because it has a "Made in USA" sticker. Doing so supports buisnesses that otherwise aren't up to par with their competition.

 

[IAteYourMother]

Even if their costs were higher, their AMAZING return policy still makes it extremely worth shopping there.

 

[Svnla]

I always hear good things about Costco. There was an article in Forbes or Fortune magazine a few months ago about how Costo beat Sams Club at every angle in business and how Wal Mart/Sams Club management struggle to find a way to beat Costco.

Good to hear some posititive things about a large company.

<<<---------- would love to shop at Costco if they have a store near by ...<<<hiding my Sams Club card..LOL>>>

 

[MaxFusion16]

costco's got my business

 

[MithShrike]

Originally posted by: MrCodeDude
Costco is awesome. Until they got rid of the Berry Smoothie!

WTF is wrong with them?

They still have it at the one I worked at.

I worked as electronics sales there for 3 months over the holiday season. The best way to get in at Costco is to apply for a front end position and work your arse off. They normally keep the best workers.

 

[MithShrike]

Originally posted by: codeyf
Costco > Wallstreet

My parents got the Samsung 56" DLP display model for $2200 last month :shocked: Thing is in perfect condition, had all the included accessories/paperwork, and included a stand! They took off $600 because it was the display!

Yeah but it's a real b!tch to get a hold of a floor manager when a customer demands that.

 

[zainali]

i love costco pizza. only if they delivered.damn

 

[Muadib]

Originally posted by: PlatinumGold
there are 8 costco's within 50 miles of my house. the nearest one is 15 miles away, but with traffic conditions etc it would take me 35 minutes to get there.

Heh, I just looked at your profile to see if you lived in jersey.

I went to Costco to at lunch to get Contantine, but it was $21.99. Their DVD prices suck now, and the selection is a pitance of what it once was. Their price on Powerbars can't be beat though.

 

[dr150]

Ya.

Instead of renting videos or buying games, I just go to Costco and then return them after I'm done with them.








JUST KIDDING!

 

[intogamer]

Originally posted by: fbrdphreak
That is cool, didn't know that about Costco (don't have any around here).
:thumbsup: for a company with what appears to be good ideals

 

[BatmanNate]

They've had my business for 5 years, for what that's worth.

 

[ScottFern]

That is some real good PR right there. Actually made me curious to go check out my Costco. How much to join?

 

[Eli]

Originally posted by: ScottFern
That is some real good PR right there. Actually made me curious to go check out my Costco. How much to join?

IIRC, 35$ a year?

 

[rahvin]

Well I'm a stockholder, the analysts hate them because they won't sacrafice the long term vision for short term gains. As a result the stock yo-yo's but even still has a pretty steady value increase over time.

 

[anxi80]

costco is evil. i say that because i cant walk out of there without spending at least $100. i try and use restraint, but hot damn if their prices arent the best around! where else can you get a hot dog and a drink for $1.62 after tax (besides 'terribles' in vegas )

 

[Rogue]

Costc0wns is what they should call it. Down with Wal-Mart! I wish I had a Costco in town because all my business would go to them and Target, hands down.

 

[KevinH]

Originally posted by: zainali
i love costco pizza. only if they delivered.damn

Their pizza and hot dogs served outside kept me well fed on the cheap in college . Mmm...

 

[BoberFett]

Originally posted by: Rogue
Costc0wns is what they should call it. Down with Wal-Mart! I wish I had a Costco in town because all my business would go to them and Target, hands down.

Target isn't the saintly corporation they'd love to have you believe.

Edit: Ignore that link, that was one of Target's vendors. There were issues surrounding Target and their acquisition of property in downtown Minneapolis, I'm trying to find links.

 

[kranky]

I truly believe that a place like Wal-Mart could double their salaries and still not spend more in total. Offer a livable, attractive wage, and you will get people who work hard because they want to keep that job. Double the wages, and you could get it done with half the workers. Net effect = same cost.

Costco is the only place that's figured it out?

It's no wonder that places that pay minimum wage can't keep anyone. Why should anyone stay if they don't like it, when they can get a job that pays the same in two hours? There are so many openings for minimum wage jobs, you could quit after a week for a whole year and still find places that would hire you.

 

[rahvin]

Originally posted by: kranky
I truly believe that a place like Wal-Mart could double their salaries and still not spend more in total. Offer a livable, attractive wage, and you will get people who work hard because they want to keep that job. Double the wages, and you could get it done with half the workers. Net effect = same cost.

Costco is the only place that's figured it out?

It's no wonder that places that pay minimum wage can't keep anyone. Why should anyone stay if they don't like it, when they can get a job that pays the same in two hours? There are so many openings for minimum wage jobs, you could quit after a week for a whole year and still find places that would hire you.

The problem is that wall-street and the analysts in particular are only interested in quarter to quarter results. As an example last quarter Costco missed their estimate, they missed it because gas prices had fluctuated radically and they ended up not making as much as they had hoped per gallon. The analyst in the conference call asked them why they didn't just raise prices on the gas across the board and weather the erratic prices with just higher prices in general. That is the mentality Costco will always deal with because they aren't interested in next quarters numbers, they are interested in long term growth and frankly in the long run owning a stock that is what you want. Costco gets beat up because they don't play the day trading game, but you watch, as they expand across the rest of the country the long term gains on their stock will outpace walmart 10 fold.