The company is proving Wall Street wrong by adhering to a radical idea: Treating customers and employees right is good business.
A few excerpts from the article:
"Why shouldn't employees have the right to good wages and the right to good careers?" asks Sinegal one day last month, sitting in his strikingly unpretentious office, more like an alcove really, devoid even of a door separating him from his employees. Costco has told Wall Street again and again that it believes the key to its success rests with taking care of employees and customers.
Given the overpowering influence of Wal-Mart, the nation's largest private employer and the world's largest retailer, at times there has seemed no way out from the downward competitive pressure it exerts. Which is why Costco's defiantly different approach has grabbed the attention of the folks who study these things.
In politics, of course, Wal-Mart's team trumped Costco's. But in business, well, that's another story.
Thursday, August 17, 2006
Costco vs Wal-Mart - Business Models
Reading about Costco and Jim Sinegal makes one question the Wal-Mart business model even more. Here is an article from the Seattle Weekly that I came across about Costco. It proves that all retailers are not the same.