^^^ well, since you asked ...
- de-facto monopolies in certain US cities thanks to Democratic zoning keeping out WalMart competition
(snip)""Costco Says Move Your Big Box, Walmart
A Costco envisioned for a 16-acre parcel in the Illinois Medical District faces a complex approval process that likely means any ribbon cutting is at least two years away, representatives from the retailing behemoth said," the Chicago Journal reports.
Costco is often cited by social activists as an example of relatively model corporate citizen.
“The most important thing is that Wal-Mart has to follow the lead of Costco,” Gov. Pat Quinn said this week. “Costco pays a living wage, a decent wage. They pay good benefits to their employees, and that’s what every employer should do.”
"Asked about the argument that a low-paying job is better than no job," the ChicagoTribune reported, "Quinn echoed a common line of attack on Wal-Mart: 'I don’t think it’s good to have a race to the bottom'."(snip) from
- de-facto monopolies in certain foreign markets
(snip)""Costco's had an easy ride because it's found a loophole in the U.K. planning system," said Tony Bowhill, a London-based planning consultant at CGMS Consulting Ltd. "It's amazing it calls itself a wholesaler rather than a retailer, because around 30 percent of its sales come from individual customers rather than businesses."
Costco generated $2.6 billion in sales outside the United States and Canada last year -- and says 80 percent of it came from its 15 U.K. outlets. "(snip) from
- expanding to service 'government funded' customers
(snip)"According to Costco, they selected the two New York City locations because of a high percentage of food stamp recipients in the area. Depending on this test program, Costco may opt to eventually make food stamp payment available at more of its locations.
Not surprisingly, the global economic downturn also played a role in this move by Costco."(snip) from
- management willingness to sacrifice profit margin
(snip)"Costco Wholesale Corp.’s fiscal third-quarter profit fell 29 percent because of softer sales and a litigation charge for the warehouse club operator.
Costco’s management said falling prices on its goods and the lackluster consumer appetite shaped the quarter – with soft sales of items like jewelry but strong sales of fresh fruit and other consumables.
The Issaquah, Wash.-based warehouse club operator earned $209.6 million, or 48 cents per share, for its fiscal third quarter. That’s down from $295.1 million, or 67 cents per share, a year earlier."(snip) from
I will concede that Costco's CEO Sinecal shares a lot of attributes with Relayer's furniture company owner in terms of choosing to sacrifice profit potential and 'giving' those profits to his workers. However, unlike the furniture company, Costco has investment banks and stockholders to answer to. This is a shoe waiting to drop.
On the flip side, Costco has contributed heavily to Democrats, and (for the moment at least) seems to be enjoying some quid-pro-quo 'protection' from WalMart competition in many large Democratic cities. Additionally, those same Democrats are providing a steady stream of new Costco customers in the form of food stamp recipients. Combining political 'protection from competition' as well as a 'captive' base of new tax money funded food stamp customers more or less places Costco in the same 'partnership' position as GM and Chrysler !
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