Which in turn makes for a stronger organization, probably with much less turnover than competing retailers experience. Thank you for sharing your positive experience working for Costco. It's refreshing to hear especially in an era where it's more typical for employees to be treated as disposable commodities. A solid workforce creates a strong company. I applaude Jim Sinegal for standing by his principles and creating a loyalty that is good for both the employee and the company. Givers gain! :)
Jim Sinegal is the BEST CEO a company can have!!! He treats his employees like "people" that have a family life outside of work life. This is the reason the hours are from 10am - 8:30 pm. This is the reason why he pays a cart pusher 45k+ benefits a year. I have worked for Costco for almost 15 years and i am so thankful i work for a man with so much integrity, honesty and loyalty. And ,I as an employee give the same back.
Again, you are talking only the bottom line. If you no longer own Costco shares and are not interested in purchasing any with the current management's plan, why are you here? Perhaps to play "devil's advocate"? I agree, you want to stir things up but there isn't any other purpose to your post other than that. Again, part of the negativity that has permeated our society.
Hey, I have an idea! You should contact Jim Senegal and share your opinion along with all the Wall Street analysts (Yes, those would be the analysts who rated AIG as a "buy" last June or July); he may actually consider changing his entire management style that has worked so well for him, his employees, the consumer and investors based on your suggestion. Remember the tortoise and the hare? Slow and steady often wins the race.
If Costco isn't the stock for you, then stay away from it like you've been doing. Do you feel that some "right" to purchase Costco's stock has been taken from you because you don't agree with the management style? There isn't any reason for you to be posting criticism on this message board other than to whine or maybe you just don't have anything better to do with your days. The next time you are at Costco, don't forget to pick up some cheese and crackers to go with the whine. The needless criticism is ridiculous.
Costco's gross profit margins are 12.5% Walmarts gross margins are 25%. Target's gross margins are 32%. What gives? I understand that Costco wants to give their customers the best value, but their gross profit margins are so low as compared to the other discounters. If Costco would ever change their ways and actually marked products up a little higher, wow, the sky is the limit for shares. But management will not bend and this is why Costco has a market cap of around 22 billion. Don't get me wrong, here. I'm not short Costco. I'm actually a big fan of Costco. I have always complained about Costco's management's firm and unyielding stance about raising their gross profit margins above they are now. Jim Sinegal, great CEO, and I have a the greatest respect for him, but man, I just wish they would have gross profit margins like walmart or Target. Then Costco would be amazing. I know, I know. Different business model. Costco also makes money from membership fees where as Walmart and Target does not. But sometime, I feel like that is where Costco is making it's money, from membership fees. And the actual earnings generaged from the business is negligible. Just my thoughts. Thanks.
Watching ONLY the bottom line is like watching one's feet while walking and not looking at what lies ahead. It would be easy to walk into a wall or off a cliff. It's the same with managing a business. Watching only the bottom line is part of what put us in the economic mess we are in. I'm in with Costco for the long run. Old style management, it's the principles which are followed in the business I partially own and guess what? Our employees enjoy working here and we enjoy having them around! Happy people....it's not always about money. Giver's gain.
Could we increase our bottom line? Yes. Would it be at the expense of our employees? Yes. Would it be worthwhile? No, because life is not only about profits.