Re: Re: WMT goes orgo
On Aug 29, 2006, at 2:08 PM, ravi wrote:
Combined with a smart business strategy that sells a mix of higher-margin products to more affluent customers,
Talk about burying the lead (or lede, as they say in j’ism). Go to
the respective websites - Costco http://www.costco.com/Home.aspx
features digital cameras, computers, mid-level cookware sets. Wal-
Mart http://www.walmart.com/ features $16 chairs and $8 lamps.
WMT is a much bigger company, with a market cap nine times as large
as COST’s, six times the revenue, and profitability measures 1.5-2
times as big. If higher wages and lower turnover really led to higher
profitability, who could argue that Wal-Mart managers wouldn’t have
figured this out? They’re very smart people down there in Bentonville.
Doug