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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (404049)	8/3/2008 6:50:53 PM
From: combjelly	Read Replies (2) \| Respond to of 1573242

"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?

To: i-node who wrote (404049)	8/3/2008 8:17:03 PM
From: tejek	Read Replies (2) \| Respond to of 1573242

JF is talking about $18/hour as a basic wage rate, which would put the average far higher. But Walmart returns twice the net income percentage (of sales) as Costco. 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. You amaze me......where did you get your accounting degree? First of all Costco and WMT are not in the same business.......Cost is more food; WMT is more clothes. That means COST deals with a much tougher set of margins. Secondly, COST doesn't nickel and dime its employees like WMT does.....and that's the point that CJ was making........that COST pays its employees a better wage and provides them with more benefits than WMT. By being niggardly with its employees, more wealth accrues to WMT's mgmt and shareholders......you know what I have been saying for years now.....your fav people, the rich, keep getting richer at the expense of the poor. COST to some degree shares its profit with their employees...what you would call communism or socialism. Its an enlighten way to do business and its why COST has much better employees than WMT. In fact, most places in WA state are trying to keep out WMT out..........because its acts like a black hole on the community.