Wal-Mart: Boon or Burden?

Just read in the paper that Walmart is failing in Japan.

R E M E M B E R
J O N Q U I E R E
Q U E B E C
Home of Walmart Worker Abuse

R E M E M B E R
J A C K S O N V I L L E
T E X A S
Home of Walmart Worker Abuse

OK Kiddies...The “Crack Back-to-School Research Team” is Back

Here’s what we found:

We “shopped” and compared 6 stores: Wal-Mart, Target, Walgreens, Fleet Farm, K-Mart and Office Max.

We compared a list of 8 identical items:
1.  Elmer’s 4oz. School glue
2.  Crayola 24 ct. crayons
3.  Crayola 12 ct. colored pencils
4.  3-hole, wide-ruled, 150 ct. paper
5.  #2 yellow pencils
6.  2 pocket paper folders
7.  BIC pens, red, blue, & black
8.  1- 12” plastic ruler

The results* were quite interesting.  Apparently Walgreens isn’t too serious about selling school supplies, they came in dead last.  They must think that putting a Walgreen’s on every major corner in the city is enough to guarantee customer loyalty.  They are not even an “also ran.”

Speaking of “also rans,” our pick for this category is K-Mart.  The stores we visited were sloppy, and poorly stocked.  They didn’t come out much better than Walgreens.

This leaves us with the 4 contenders: Wal-Mart, Target, Fleet Farm, and Office Max.  Ok, so the nod goes to Wal-Mart for 1st place.  They only beat the other 3 however ranging from just .08 at Target to $2.35 at Office Max… Wow!  That won’t even get you a Big Mac without the fries.

Here’s the results * in order:
1.  Wal-Mart......$1.99
2.  Target..........$2.07
3.  Fleet Farm....$4.13
4.  Office Max....$4.34
5.  K-Mart.........$7.27
6.  Walgreens....$8.50

So I ask Scott and all the others who keep bragging about the money that Wal-Mart puts back into the pocket of consumers, what would you do with that extra $2.35?

This is the point many of us have been making all along.  Show me the 3 month or 6 month study comparing a list of 15-20 well known items. (not generics or private label brands).  Commodity items like toothpaste or toilet paper don’t count either.  All products compared must be of the same brand and size packaging.  Track this list between multiple stores (at least 5).  And then come back and tell us how much money Wal-Mart is really saving the “average” customer!  I’d be really amazed if the difference between #1 (presumably Wal-Mart) and #2 is more than $10.00 saved in a 6 month period. This will do a lot to keep poverty at bay. Number crunchers like Nick and RDS will like this one.  Of course we should eliminate RDS all together because as we all know, he lives where the cost of living is really really low.  And who knows if Wal-Mart doesn’t favor the home state stores a little more when it comes to pricing!

* Your results may vary

More class envy BS from WMW. When will you people post a POSITIVE statement? When will you tell everyone just how YOU would run Wal-Mart successfully? It is very easy to sit in your comfy desk chair and criticize Lee Scott but, of course, he is the CEO and you are not. Let’s hear WMW propose a successful business plan. Why doesn’t the UFCW or some other union step up and put their money where their mouths are?

1. Buy 200 “dark” Wal-Mart locations.
2. Sell only US made goods.
3. Pay unionized employees $17 per hour to start plus health, dental, vision, life, disability, pension, 401k, discounts, stock options, car insurance, home insurance, mortgage subsidies, profit sharing, etc.
4. Earn huge profits from the store and from the resulting union dues.

Come on, WMW. Step up. If you idiots can do a better job than Lee Scott and Wal-Mart, prove it! If you cannot provide a positive idea or a positive solution, do so. Otherwise you are armchair quarterbacking and you have nothing to offer.

ScrewedbyWal-mart,

I think your ad-hoc study is a great idea.  It is by no means scientific but worth a an interesting conversation.  What I don’t understand is why you would eliminate “commodity” items from the basket since they are as “staple” as crayons, glue and paper and more so.  Just as long as you are comparing “apples to apples” in name brand items.  I buy my cleaning supplies, toilet paper, dog/cat food etc from Walmart all the time and I would be quite surprise if that is not the norm for the average Walmart shopper.

I also think you need to include some food items in that list since Walmart also competes with the likes of Safeway and Giant Food.  You will also not gain much by doing it over a 3-6 month period as long as you factor out loss-leader prices for any item on any specific day that is “on sale”.  So should I pick my 15-20 items that I buy on a regular basis?

Screwedby,

“a list of 15-20 well known items. (not generics or private label brands).  Commodity items like toothpaste or toilet paper don’t count either.”

Why not allow generics or private label brands, they are usually the cheaper items and where the savings are?  Maybe that is exactly WHY you want to exclude them, right?  Also, school supplies are basically seasonal items, therefore tracking them over 6 months wouldn’t be a very good comparison!!  And, why NOT commodity items, are you trying to exclude almost everything that people actually save money on?

“what would you do with that extra $2.35?”

Since most people would buy more than your 8 items, the shopping trip savings would be quite a bit more!!  Let’s say that the average shopper saved ‘only’ $5.00 a week on their entire bill, that would be $5 X 52 = $260.00 a year, or enough to pay a months electric bill, plus a months water bill and maybe get a couple of Christmas gifts for the kids!!  That may not sound like much, to a movie field producer, but to a single mother, that might be a welcome relief!!

“$17 per hour to start plus $17 per hour to start plus health, dental, vision, life, disability, pension, 401k, discounts, stock options, car insurance, home insurance, mortgage subsidies, profit sharing, etc. [Nick]

Does Lee Scott set the example by not taking health, dental, vision, life, disability, pension, 401k, discounts, stock options, car insurance, home insurance, mortgage subsidies, profit sharing, etc?
Remember, the leader sets the pace.

R E M E M B E R
J O N Q U I E R E
Q U E B E C
Home of Walmart Worker Abuse

R E M E M B E R
J A C K S O N V I L L E
T E X A S
Home of Walmart Worker Abuse

“why NOT commodity items,”

Why did I just know RDS would whine about this one?

RDS also says, “Let’s say...”

No!  Let’s NOT say… Show me! How do you know that the “average” shopper will save $5.00 per week?  What assumptions are you making?  Are you suggesting a minimum total purchase of $100-$150?  How many “average” shoppers don’t just stop for 5 or 6 items on their way home from work?  No more “what ifs” or “maybes,” no more assuming from you RDS… SHOW ME!

“Mary in” did answer your question RDS… because these are in many cases, “loss leaders.” They are NOT representative of everyday prices.  I can tell you this...that 3-4% profit margin at Wal-Mart doesn’t come from its commodity/loss leader items.  Wal-Mart “rolls the prices back up” on the items they think customers don’t watch as closely!

My whole point is that given a longitudinal study of 15-20 commonly available name brand items, the savings at Wal-Mart IS NOT as great as they’d like everyone to believe.

And “Mary in” is correct.  My “ad hoc” study was neither definitive or scientific.  I never claimed it was.  I just want people to open their eyes when it comes to Wal-Mart.  What they see might amaze them.

#1. Of the over 400 dark stores WalMart has in the United States alone, they refuse to sell any location to any competitor.

Reason. They are afraid. Costco is on course to double the number of its stores to over 1000 by 2012. The expansion of this working business model of social responsibilty in retail is something WalMart won’t have. It is a public service announcement embarrassing to WalMart when average Costco wages of $17.46/hr and $11/hr lowest wage to start and a 92% health care benefits package coverage show up in any location. including the stock market-

Ahead of the Bell: Costco Wholesale
April 17, 2007 7:48 AM ET
After combing Costco’s books and adjusting for his new estimates, Kaiser raised his price target on Costco’s stock to $65 from $56. The new price target is about 19 percent higher than the retailer’s stock’s close at $54.40 on the Nasdaq Stock Market Monday.
http://news.moneycentral.msn.com/provider/providerarticle.
aspx?feed=AP&Date=20070417&ID=6756370

In fact, Costco has outperformed Wal-Mart on the stock market over the last five years. The real reason for the difference in compensation and benefits is that Costco employees have much lower turnover, better interaction with customers and are more productive than Wal-Mart’s workers.
For example, Costco Wholesale pays its workers $17 an hour on average, while its competitor, Wal-Mart’s Sam’s Club, pays only $10 an hour on average

James O’Toole and Edward E. Lawler III are professors at the University of Southern California’s Marshall School of Business and authors of The New American Workplace (Palgrave-MacMillan, 2006).
http://www.forbes.com/2007/04/24/corporate-layoffs-costs-
oped-cx_jot_0425jobs

Costco
Date Open High Low Close Volume
17-Apr-07 55.40 56.03 55.17 55.60 5,958,500

20-Jul-07 62.18 62.20 60.98 61.25 3,686,600

26-Jul-07 59.60 60.03 58.34 59.05 6,301,800

25-Jul-07 $ 0.145 Dividend

25-Apr-07 $ 0.145 Dividend

WalMart
Date Open High Low Close Volume
17-Apr-07 48.19 48.43 47.89 48.17 12,391,300

5-Jun-07 50.91 51.20 50.36 50.52 32,728,500

26-Jul-07 47.51 47.77 46.53 46.82 26,642,800

16-May-07 $ 0.22 Dividend

“In fact, Costco has outperformed Wal-Mart on the stock market over the last five years.”

“Costco pays their workers well”-the average wage at Costco is $17.46 an hour-“and we know they’re profitable.”
http://www.newyorker.com/reporting/2007/04/02/070402fa_
fact_goldberg?currentPage=1

The Union Difference
Though only about 18% of Costco’s total workforce is unionized, union representation creates a ripple effect and helps determine labor standards in all stores. The Teamsters represent about 15,000 workers at 56 Costco stores in California, New York, New Jersey, Maryland and Virginia. Workers are covered by West coast and East coast contracts, negotiated in February and April of last year.

“The agreements lock in wage and benefits packages that are the highest in the grocery and [discount] retail industries,” said Rome Aloise, chief IBT negotiator for Costco and Secretary-Treasurer of Local 853 in San Leandro, Calif.

Costco passes on similar compensation packages to its non-union workers; the contracts act as templates for other stores’ employee handbooks.

<http://www.laborresearch.org/print.php?id=391>

Costco, No. 28 in the Fortune 500, is the fourth-largest retailer in the country and the seventh-largest in the world.
http://money.cnn.com/magazines/fortune/fortune_archive/
2006/10/30/8391725/index.htm?postversion=2006102515

Wal-Mart founder Sam Walton once said, “I pay low wages. I can take advantage of that. We’re going to be successful, but the basis is a very low-wage, low-benefit model of employment.”
http://en.wikipedia.org/wiki/Criticism_of_Wal-Mart#_note-
iswalmartgood

“Is Wal-Mart Good for America?” PBS. November 16, 2004. Retrieved on February 24, 2007.

WalMart- ‘Living wages’? ‘Family wage’? ‘Health care coverage’? We don’t understand. And we don’t want to either.

“Few things are harder to put up with than the annoyance of a good example.”
Mark Twain, Pudd’nhead Wilson (1894)

For me this will be very simple.  My “basket” will include items I buy on a regular basis, week after week.  It’s too hard to price compare generics or store brands because it’s not an apples to apples match so I’ll stick with just the apples to apples matches, BUT I absolutely think items such as toilet paper and dog food should be included for the simple reason of… iit’s what I buy and not just a whim purchase.  Let’s see what I find.

Mary,

If you are still keen on WalMart dog food, may I also suggest that you stock up on can chili and WalMart imported seafood products...and remember price comparisons must include a metric for your involuntary contributions to the WalMart parking lot/vomit garden.

<b<Your Basket Study Will Be Interesting, “Mary in"</b>

Well, “Mary-in,” in light of all the recent publicity over dog food ingredients, you might want to reconsider including that item in your study.  Besides, one reason I WOULDN’T include it, is because not everyone has a dog...you’re limiting the study more.  I agree with you that store brands and generics are more difficult to compare, and that’s why I suggested they not be included.

Because prices are very subject to change, and sales come and go, this was the reason for doing a study over a longer time period.  I’m interested in “The Long Run,” not the “one Day Blow-Out Sales.”

SO...to recap, here are the key benchmarks of this proposed “Basket Study.”

1.  At least 3-6 month study
2.  15-20, common or name brand items. Things like hamburger or hot dog buns might be considered a “commodity,” but when it comes to baked items, freshness is a key factor.  This is why Wal-Mart and other stores are more likely to go with a more local source.  Besides, how much can anyone change a hamburger bun?  So even though labels may be different on an item like this, I think it would be a fair item.  Again, something like 2 liter bottles of Coca Cola, I’d almost consider to be a “loss leader,” “commodity,” or as Wal-Mart likes to call them, “Opening Price Point” items.
3.  At least 5 stores compared, Wal-Mart and 4 others...this may be very hard, if not impossible to do in a small town.

Let us know when you have “Your List” Mary-in.” Maybe anyone that’s interested can make suggestions---additions or deletions, until we get a list of 20 items most of us can agree on.

How Come We Don’t Hear Nick et. al. Now?

Isn’t it funny, now that we see some signs of the stock market tanking largely because of housing concerns, Nick isn’t singing his praises about America’s robust economy quite as loudly as he did about a week ago.

There was another neo-capitalist who used to post here quite regularly by the name of M Cooper.  Back in January of 2006, when Wal-Mart stock was at $45.84 “Coop” was very bullish on Wal-Mart.  Coop’s last words were: “buy,” “buy,” “buy.”

Yesterday, over a year and a half later, Wal-mart closed at $45.94.  I wonder if he still feels this way?

ScrewedbyWal-mart,

Keep the generics and store brand items out of the mix.  You are correct in that not everyone has a dog… but others also don’t… eat hot dogs… use paper towels… buy wood floor cleaning products… etc.  I’m open to any items, whether I specifically use them or not.  They just have to be same items sold at the same 5-6 stores which is not always easy to do when you talk pure grocery stores like Safeway when they are in the mix.  My items will be sure to include day-to-day items that I USE and that I CAN purchase from any of the 5-6 stores… same size, weight, variation etc.  apples-apples.

I also don’t think a 3-6 month study will make any difference because you know when items are on sale or not and we are comparing the every day price.  If it’s on sale for that week then you must take the regular price.  Let’s start with one week and go from there.

As for SanDiegoView… You are just plain weird, rude and obnoxious.

Good to See “Mary in” is Willing to Give it a Go!

Anymore takers out there?  It’s not like any of us would have to go that far out of the way...we all shop somewhere.  Besides it could prove interesting to see how prices play out in different sections of the country.

“I’m open to any items, whether I specifically use them or not.”

So am I.  I just think the items on any “shopping list” that’s being compared between stores, should include items with the broadest possible appeal.  Pickle companies for example make their profits “on the cut"-- halves, spears, slices etc.  None of that 1 gallon whole pickle crap that Wal-mart foisted upon consumers.  I think the list can include both food and general grocery items as well.  Maybe something like Windex Window cleaner or something comparable...maybe Kraft Macaroni and Cheese...etc. etc.

I’m glad you are sporting enough to try this...don’t know if it can be pulled off successfully or not.  I seen there have been similar things tried in different parts of the country, but nothing really long term.

“ If it’s on sale for that week then you must take the regular price.

My thinking here is that whatever price comes up in a given week for any store...that’s the price for that week.  If it happens to be a sale price...so be it.  I’m thinking that over time it will all average out.  Like I said, sales come and sales go.  Prices are never static.

If we could all do this in the “spirit of fun,” then both the Pro Wal-Mart crowd and Anti Wal-Mart crowd could have some input into this little “project.”

The “winner?” Well they just get bragging rights I guess!

Market baskets are fun but I’m not sure the totals mean very much. As you can see by the problems just trying to come up with an acceptable list, there’s just too many variables to make the totals significant. In fact, I’ll bet if you did a survey of 6 Wal-Marts or Targets, etc., you’d probably come up with a similar spread. Prices for any given item vary greatly from area to area, store to store. One store’s loss leader might be another store’s high-dollar hook.

If you guys do this, I’d like to see the totals for a Bottom Dollar basket. What’s the least you could spend if you bought the lowest cost items at all 6 stores?

Screwed,
I applaud your attempt at an objective study!! and the results are pretty much what I have found anecdotally by shopping around - that Walmart is indeed the cheapest place to buy stuff. However, your conclusion that is saves “only $2.35” seems like a bad interpretation of the data. Why not account for the fact that people typically buy more than a few school supplies?? If they spend more than just for those few items, then the amount saved gets amplified in direct proportion to how much they spend. So if I buy a cart of groceries, then I’m saving more like $15 to $20 - and that’s a single trip.

It’s amazing how you freely admit that your data supports the notion that Walmart is cheaper, and yet you still come to the conclusion that we shouldn’t shop there. Instead of “ gee, maybe I was wrong about Walmart, maybe they do save people money”, it’s “well, we don’t save as much as we’d like to save” - textbook definition of rationalizing

I think your “crack back-to-school research team” need to stay off the crack.

It’s amazing how you freely admit that your data supports the notion that Walmart is cheaper..

Before we get intoxicated by our own fumes, fda, keep in mind this “back-to-school” sale was Wal-Mart’s idea. I’m not at all sure that the others have had time to react.

It would be interesting to go back and redo these same items in a week or two and see if others are following Wal-mart’s lead.

Question to Investors: How much profit can there be when you sell the following list of items for $1.99?

1.  Elmer’s 4oz. School glue
2.  Crayola 24 ct. crayons
3.  Crayola 12 ct. colored pencils
4.  3-hole, wide-ruled, 150 ct. paper
5.  #2 yellow pencils
6.  2 pocket paper folders
7.  BIC pens, red, blue, & black
8.  1- 12” plastic ruler

Since Wal-Mart publicly announced that all back-to-school supplies would be loss leaders, the market basket is slightly scewed, don’t you think?

Sales up, maybe. Profits? Who knows?

Ken, how would you describe your “Bottom Dollar basket”?

ScrewedbyWal-mart, I don’t agree with taking a “sale” price for an item unless that stores offers that same sale price every week, or at least on an extremly regular basis.  Otherwise I would consider it a loss leader and an extremely jaded price since I couldn’t get that price on a regular basis.

Screwedby,

“Here’s the results * in order:
1.  Wal-Mart......$1.99
2.  Target..........$2.07
3.  Fleet Farm....$4.13
4.  Office Max....$4.34
5.  K-Mart.........$7.27
6.  Walgreens....$8.50

So I ask Scott and all the others who keep bragging about the money that Wal-Mart puts back into the pocket of consumers, what would you do with that extra $2.35?”

Seems to me, that if someone who shopped at Walgreens, would have saved $6.51, had they shopped at Wal-Mart instead!!  Look at K-Mart, their prices are $5.28 higher, no wonder they are going down the tubes!!  Also, I notice, that the beloved Costco is not on your list, how do they compare with Wal-Mart?  Maybe SDV can do the math here, if there are no Costco stores in your area!!

This IS the problem with people like fda and RDS

“I have found anecdotally… if I buy a cart of groceries, then I’m saving more like $15 to $20.”

What do you call a “cart full of groceries?” Would you buy this same “cart full” every week over a 3 month period?” What was the receipt total?  Is that $15-$20 savings a guess? No more “anecdotal comments,” no more “ifs,” SHOW ME!

fda...were you poured from the same mold they used for RDS?  Right away you go for the ridiculous!  NO...I still don’t feel “I’m wrong” when it comes to Wal-Mart. 

“...you freely admit that your data supports the notion that Walmart is cheaper...”

Yes, I’ll “freely admit” you saved .08 more than I did because I chose to shop at Target.  WOW!  What are you going to do with all that money, fda?

“bad interpretation of the data...”

No “interpretation” needed.  No spinning!  The prices were what they were.  My suggested school list was taken directly from the lists that some 3-5th grade teachers had left at some of the stores.

Ken V has correctly pointed out some difficulties with these “Basket Studies.” Prices are hard to pin down.  They are always changing...packaging sizes vary etc.  This is why the basket study I suggested had to contain exactly the same brand and size items.  This is why we don’t see very much of this.  The time contraints are enoromous too...I think I may have been “slightly” over-optimistic is wanting to compare 6 stores over a 6 month period.  I know I don’t have this kind of time… but maybe comparing Wal-Mart and 2 other stores over just a 3 month period would be a start.  Besides...I wouldn’t want to be in any Wal-Mart from the end of October through February!

On another note, Lee Scott made this comment in May:  “Quite honestly, we’re not satisfied with our overall performance” he went on to say, that profits and sales were “not where we would have expected to be nor where we believe we should be.”

Consider this byMarkham Lee:

“A strong brand can trump a lower price from another brand, as the product will be seen as inferior and thus not capable of meeting the customer’s needs. A strong brand is an absolute necessity to reach up-market consumers because their concern is in acquiring the strongest combination of product characteristics first, price second.”

With Ken’s permission, I’m suggesting a good quote for his quote file if he doesn’t have it already:

“You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time.” ~Abraham Lincoln

Some clarification for you “Mary in”

“I don’t agree with taking a “sale” price for an item unless that stores offers that same sale price every week...”

Are you trying to tell me Wal-Mart has the same price on all items each and every week?  The reason I suggested taking the sale price is because neither you nor I can predict when customers will shop.  What if a customer doesn’t shop every week, but instead every other week? 

This is MY POINT.  If customers don’t hop around, chasing the “lowest price” but stick with a good store over time, their tape total should average out.  Trying to keep track of sale prices is almost as hard as trying to time the stock market.  Dollar cost averaging is an investment strategy that many successful investors use.

Ken, how would you describe your “Bottom Dollar basket”?

If you arrive at a representative sample, the store with the lowest total will not necessarily be the lowest on all items. My basket would have the lowest items from all stores.

You know. What did they used to call it? Comparison shopping.

SanDiegoView,

More West Coast BS, I see…

“#1. Of the over 400 dark stores WalMart has in the United States alone, they refuse to sell any location to any competitor.”

Untrue (at least in my town)—we have a older store that recently closed, and the only conditions for the next would-be tenant is that it cannot be a grocery store (which was no big deal, as there is a large grocery chain, next door to the former Wal-Mart).  No mention of shutting-out any other retailers, discount, or otherwise.

I don’t think Target or Costco are in the business of moving-in old Wal-Mart stores, in the first place.  After all, Wal-Mart no longer wanted these properties for a reason, didn’t they?

Typically, former Wal-Mart stores that still have “retail potential” usually ends-up becoming a niche retailer, like Tractor Supply Company, or Big Lots.

“Reason. They are afraid. Costco is on course to double the number of its stores to over 1000 by 2012.”

Oh, so Costco is bumping-up to 700 stores in the U.S.? 

Still rather small, if you ask me, as currently, Costco only has 359 stores in the U.S. and 129 stores, elsewhere. 

Costco company policy says they will not build a store in any town where the average household income is less than $50K a year (which is good business, given that Costco sells quite a bit of high-end merchandise).

Translated, that means the big cities and growing surburbs get Costco—everyone else does not.

We’ll revisit this in 2012.  Until then, nothing impressive, here…

Bill

Bill

In the Pittsburgh area, Costco is only in 3 locations. Cranberry (a wealthy North Hills community and the fastest growing suburb in Pennsylvania), Moon Township, (an upper middle class West Hills suburb voted one of the top 100 places to live in America) and The Waterfront at Homestead (an upscale development on the site of the old USS Homestead steel works, which attracts wealthy shoppers from across the river in Squirel Hill, Shadyside and Summerset at Frick Park).

Wal-Mart, on the other hand, has multiple locations in Butler and Allegheny counties. From my own observation, there are at least 5 Sam’s Clubs in these two counties, in addition to Wal-Mart’s in at least 15 locations. Wal-Mart has stores in upscale, middle class and poor areas. They cater to everyone. They do not seek out customers who earn at least $50,000 per year. They do not discriminate. They accept a dollar from anyone.

Let’s see Costco open in a slum area like East Liberty in Pittsburgh. This area has not had a grocery store in 20 years and last year rejected an Aldi’s. Perhaps Costco can cater to these taxpayer financed wards of the state.

That Was THEN...This is NOW, Nick

<i>"Let’s see Costco open in a slum area like East Liberty in Pittsburgh.”

Maybe you should check in with Mayor Bob O’Connor in East Liberty before you shoot your big mouth off.  He doesn’t seem to share your assessment that East Liberty is a “slum.”

Apparently a lot of retailers don’t share your dismal view either.  I think Costco likes to pick and choose its battles very carefully.  For this you fault them?

Seems to me you should be more concerned with Target.  They’re looking at projects in East Liberty.  Home Depot and Whole Foods are also there as well as at least 4 grocery stores.  Yeah… the place sounds like a real “slum” Nick.  Why, it could be Anytown, America!

They (Wal-Mart) do not seek out customers who earn at least $50,000 per year.

History has been re-written and the whole “upscale” trainwreck never happened!

Um...how come we got all those ‘skinny jeans’ in the back?

They (Wal-Mart) do not discriminate.

Then how come Wal-Mart is embroiled in the largest discrimination lawsuit in history?

**It may be time for another sabbatical, Nick. You’re unraveling again.

Costco is a thousand times better than Walmart will ever be. My friend works there and she loves it! It should not surprise anyone that Walmart has 400 empty stores and cannot sell them. They are dumps even if they are open!

Kara,

“Costco is a thousand times better than Walmart will ever be.”

Could be, but who wants to travel 150+ miles to go shopping at Costco?

Ah, excuse me, Screwed by Wal-Mart but Mayor O’ Connor died last year. You need to update your information.

Also, I live near East Liberty. I can vouch for the comments made by Nick in. East Liberty is not a very nice area. Sears used to be there and closed due to crime and shoplifting. Of course, judging by some of the posts on this site, only Wal-Mart attracts criminals.

A Target in Watts would certainly be a crime free store.

The information has been updated, Michael!

I stand corrected.  My apologies to the O’Connor family.  Nevertheless, the information I saw, was that former Mayor O’Connor was very upbeat about the prospects for East Liberty.

Since you are so close to the area, maybe you can tell us how Home Depot and Whole Foods are doing there?  Is Target still looking in the area or not?

RDS,

Another exaggeration about Costco to help you sleep at night? I have 4 Costco stores all within 20 minutes of my residence.

“Could be, but who wants to travel 150+ miles to go shopping at Costco?’

Apparently you also forgot the fraud of Gerry Braun in the San Diego Union Trib a few weeks back where he claimed San Diego residents were driving 150 miles all the way to a WalMart SuperCenter in Palm Desert to save on coffee. Just another lie from frauds just like yourself.

SanDiegoView,

Four Costcos within 20 minutes of where you live?

Translated - Costco is big in places like the West Coast and New York—they’re not so big, everywhere else.

But then again, I guess you can only spread-out those 359 stores so far, huh?

Bill

Costco, No. 28 in the Fortune 500, is the fourth-largest retailer in the country and the seventh-largest in the world.
http://money.cnn.com/magazines/fortune/fortune_archive/
2006/10/30/8391725/index.htm?postversion=2006102515

How’s that for being spread out?

SanDiegoView,

I’m not doubting what you say, if you’re talking revenue—Costco sells a lot of premium merchandise, meaning they are turning some serious profits.

For those who live far away from the big cities and don’t know, Costco is a club store (like Sam’s Club and BJ’s Wholesale), meaning a chunk of their profits come from the $50+ annual membership fees.

But the fact remains that they only have (count ‘em!) 359 stores in the U.S. (and much of those stores are concentrated on the West Coast), which is a little under one-tenth the amount of locations Wal-Mart has under their different retail formats in this country.

http://finance.yahoo.com/q/pr?s=COST

RDS was right—those who do not live on the East/West Coast may indeed have to travel up to 150 miles to get near a Costco store, which, in these times, is hardly an incentive to visit a warehouse store, if you ask me.

For the record, there are no Costcos within 50 miles of my location (Peoria), which means I would have to travel all the way to Chicago to get my multi-pack of TP.

Bill

SDV,

“Costco, No. 28 in the Fortune 500, is the fourth-largest retailer in the country and the seventh-largest in the world.”

Fourth out of how many?  How many ‘big box’ retail chains are there in the U.S?  If I came in Second in a race and bragged about being Second, it wouldn’t sound so ‘good’ if the person I was telling it to, found out that there were only 3 people in the race, now would it?

“Apparently you also forgot the fraud of Gerry Braun in the San Diego Union Trib a few weeks back where he claimed San Diego residents were driving 150 miles all the way to a WalMart SuperCenter in Palm Desert to save on coffee. Just another lie from frauds just like yourself.”

First, I didn’t bring up that story, WMW did!!  Next, just because someone at the “San Diego Union Trib”, lied about something, is not MY fault, remember, San Diego is YOUR town, not mine!!

All I know, is that I would have to travel a long way to get to a Costco store, the only one I know about is in Memphis, Tennessee, which is about a 6 hour drive from here one way!!  But, I have a Sam’s Club less than 1 mile away from my home!!  How much would I have to ‘save’ at Costco, to pay for the gas I had to use to get there, plus 12 hours of my time?

Bill

In 2006, Costco earned less than $400 million from store operations. On sales of $50 + billion, this is an operating margin of just 0.8%. The remainder of Costco’s profits came DIRECTLY from membership fees, which are almost all profits. Costco does not make a lot of money from its stores. In fact, in 2007, they are on a pace to break even on store operations. They will profit only on membership fees. If they were not a club store, they would not turn a profit.

Facts.

RDS,

Some things are worth the trip. Costco is about 10 miles away from me and if you don’t have one there maybe some other store that is nice can bring you good quality items. You have to drive to shop don’t you?

Kara,

When I want ‘quality’ items, I shop at a more ‘quality’ oriented store, but for everyday items, I shop where the price is ‘cheaper”!!  To me, paper towels, don’t have to be ‘quality’, I just use them to wipe up messes that I don’t want to use cloth on and toss them in the garbage, does the garbage man care if they are ‘quality’ or not, I don’t think so!!  If I’m buying a pair of Dress pants, I buy them at a clothing store, but if I want ‘knock around’ jeans, I buy them at Wal-Mart!!