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Old 12-14-2013, 05:07 PM
davidmash's Avatar
davidmash davidmash is online now
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Join Date: Mar 2002
Location: Arlington, TX
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I am curious how the 100% increase in the profit margin affects pay for the labor force in light of the fact that the profit per employee is not 100% more at Costco. If Walmart were to reduce their profit margin to the same same as Costco, would they have more money to pay their labor force?

It also appears that Costco is able to run it's stores with few employes (about half if I read it correctly). I wonder what the full time/part time ratio for each company is. If Costco has more full time employes they do not need as many people to run the stores in the manner that they do.

Also (check the math) it seems that Costco is making about $1500 a sq/ft when WalMart is only making $942 a sq/ft

When you look at the chart Costco is paying their help more and making more money off of each employee and it seems is much more profitable per sq/ft but WalMart has a higher profit margin. Not sure why WalMart could not stream line their plan and do the same if not close to the same as Costco.
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