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Politics : Formerly About Advanced Micro Devices
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To: i-node who wrote (404049)8/3/2008 6:50:53 PM
From: combjelly  Read Replies (2) of 1573435
 
"But Walmart returns twice the net income percentage (of sales) as Costco."

Like I said, their margin is higher. But, Costco has roughly twice the sales or more per store. Which makes it a wash as far as profit per store.

"Probably attributable to Walmart's ability to leverage its IT excellence to enable them to use more employees who are nonskilled and otherwise wouldn't be able to find work at all."

Costco's labor costs are a lot higher than Walmart's. As one might expect.

I don't dislike Walmart. I used to work for the company that put much of their IT structure in place for their warehousing. I am fully aware of how intricate and comprehensive it is.

"Walmart's greater success than Costco's has come from one thing:"

Hmm. I don't really see the greater success. Now true, Walmart's sales are higher. They have more stores in more markets. But, Costco wasn't formed until 1993. Walmart's been around a lot longer than that. Granted, Costco operates on a lower margin. But their turnover is much higher and that compensates somewhat.

" Now, you may disagree with that strategy, but in America businesses have the right to use their market power in just that way."

Can you get through an entire post without these imaginary conversations?
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