Does Big Box Equal Low Wages?

Big box warehouse club Costco delivers benefits to both its consumers and its employees
May 5, 2004, 8am PDT | Christian Madera | @cpmadera
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With all the attention that mega retailer Wal-mart has received for the low wages and paltry healthcare benefits it offers to its employees, many local officials have begun to wonder if the bargains offered at many big box stores are worth increasing the number of working poor in their community. Yet, Wal-mart's competitor Costco has emerged with a different business model -- low prices for consumers and higher wages and benefits for employees. Even with its higher labor costs, Costco's profits have been growing for last several years. Still, the company's stock has taken a hit on Wall Street due to the perception that the company's generosity makes it vulnerable to the Bentonville, AK based retailing giant.

Thanks to Christian Peralta

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Published on Monday, April 12, 2004 in Business Week
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