Wal-Mart vs. Costco, Part IV
A few weeks back, I wrote about how the number of products a store carries can drive its labor model, and a lot of other business decisions. Costco Wholesale Corp. has a few products and a lean labor force, each of whom is paid more than a Wal-Mart Stores Inc. worker; Wal-Mart has a lot of products and a lot of workers, many of whom make less than $10 an hour. When you suggest that "Costco shows it's possible" for Wal-Mart to pay its workers much more, what you're actually suggesting -- though you don't realize it -- is a radical shift in the way that the store does business. (And as presidential economic advisor Jason Furman has noted, one that might actually make workers worse off, by leaving a lot of them unemployed.)
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Trump, Presidential? Steph Curry Knows Better.
- 'Gaydar' Shows How Creepy Algorithms Can Get
- China Could Seize a Bit of the Skies
- Merkel's Lackluster Win Is Good for Germany
- More Sanctions, Fewer Insults Against North Korea
- Melania Trump Has a Bully-in-Chief Problem
- Conservatives and the Rotten Smell of States' Rights