This. Costco's Profit Soars To $537 Million Just Days After CEO Endorses Minimum Wage Increase

[warrior1]

Sorry it's a link to huffpo:

http://www.huffingtonpost.com/2013/03/12/costco-profit_n_2859250.html

Less than a week after Costco CEO Craig Jelinek spoke out in favor of raising the minimum wage, the big-box retailer’s earnings showed that paying workers a living wage doesn’t always hurt business.

Costco reported a profit of $537 million last quarter, up from $394 million during the same period last year, according to the Wall Street Journal. The healthy earnings report comes just six days after Jelinik urged lawmakers to raise the minimum wage to $10.10 an hour.

snip

[Patiod]

1. There's good research that shows >staffing and >pay = >profits

TJs and Nordstrom were the examples, but I believe it applies to Costco. More happy employees on the floor led to higher sales per square foot.

Minimizing turnover helps profit. Gruntled employees help profits (the opposite of disgruntled is gruntled, right?). More people on the floor leads to less abandoned purchases and shoppers who can be lead to find what they want.

[marlakay]

2. Was just in Costco yesterday

Slower day but you can just feel the happiness of the place. Heck with all the samples they do you almost get a free lunch!

[Benton D Struckcheon]

7. Ya made me look it up

You're right: http://en.wiktionary.org/wiki/gruntled

[IndyPragmatist123]

8. You are correct, but there are other unique business aspects for Costco

For many products, Costco only offers a single brand. Thus, they make suppliers compete with each other for that spot on the floor. This pushes prices way down (lower than what Wal-Mart can command) and increases profit margins. Sam's Club could try this model, but any normal retailer wouldn't be able to. People would not shop at Target or Wal-Mart if they were only given one option.

[Patiod]

10. Oh, I gave up on Costco after seeing the CNBC hagiography on the founder

He explained how the Costco model gets people to buy WAY more than they need. That's all I needed to say good-bye to our warehouse store membership, in spite of the good prices on lox, because I do over-spend at warehouse stores.

Now I buy bulk sizes of paper goods at Wegmans or another supermarket, and continue to buy food in sizes that won't go to waste. Foods with oils go rancid, and spices lose their oomph. We're only a family of two, so it's not sensible for us as it might be with a house full of kids.

[NightWatcher]

3. Walmart is taking a hit because their employees can't afford their own shit

Poor people spend all their money. If people work for a retailer and are offered a tiny employee discount guess what, they'll spend some where they work. It's a win-win for employee and retailer.

[warrior1]

4. I'm going there today. I needs my Healthy Choice Fudge bars!!!

[tridim]

5. Me too, after work.

I must have my Costco Ultimate Fish Sticks, carrot juice and a gigantic bag of Kettle Chips.

[redqueen]

6. I need to start shopping at Costco. nt

[1-Old-Man]

9. Non Sequitur: talking about the minimum wage today does not raise it during the preceding quarter.

[CalFresh]

11. Spot on.

A 10% increase in their membership fee, a huge run up in gasoline prices and a one time 68 million dollar tax break gave them the great quarter. I don't see poor people shopping at our Costco. At my local Costco the parking lot is full of high-end cars and SUVs. People walking out with cases of wine, prime ribs and crab meat. Now at our local Walmart you will see the poor shopping. Cheep clothes, shoes and house goods.

[octoberlib]

12. K&R!