While they share a similar set-up, Costco is in fact the antithesis of Wal-Mart. Unlike Sam’s Club, Costco has embraced good business practices and treats its employees with respect.
Jim Sinegal, its CEO, rejects Wall Street’s assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street’s profit demands. According to him, Costco’s customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers’ expense.
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