From our "Sorry We Missed This" file...
Company for the People SeattleWeekly (12.15.04)
then Issaquah-based retailer Costco offers a blue-state alternative. The company is proving Wall Street wrong by adhering to a radical idea: Treating customers and employees right is good business.
"treating customers and employees right is good business" heaven forbid...
It was classic Wall Street logic. In August 2003, the financial community decided it was fed up with Costco, the Issaquah-based discount warehouse chain and, at least until the recently announced Sears/Kmart merger, sixth largest retailer in the country on the basis of revenue. Costco was experiencing flat earnings growth for the year, and Wall Street thought it knew just what to blame. The company, proclaimed analysts, treated its employees too well. Costco's average U.S. hourly wage of approximately $16 an hour is widely considered to be the best in the retail business. And its approach to health care, as noted in a report at the time by the financial research and investment firm Sanford C. Bernstein & Co., "has been to provide employees with the best plan at the least expense to the employee." On Wall Street, this is not seen in a positive light. "Whatever goes to employees comes out of the pocket of shareholders," says Bernstein analyst Ian Gordon.
Don't those selfish employees know that the shareholders are doing all the work? How dare they get a living wage when investors are losing a few pennies a share? Have they no decency? What will we tell the children.
We noted this Wall Street moment a while ago (ie., our archives are too big to search), but it is so classic. Read the article for yourself and remember: STOP FUCKING SHOPPING AT WAL–MART!
(thanks to ExportingOurJobs.com for reminding us of this!)