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Old 02-15-2014, 08:59 PM  
petegz28 petegz28 is online now
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Rejecting Walmart Strategy, Trader Joe’s Pays Employees A Living Wage And Wins

We’ve watched as places like Walmart, Papa John’s, Target, Applebee’s and other businesses continue to pay sub-par wages while claiming their only option for profit, given the economy and their being “forced” to provide employees with insurance, is to either cut employees’ hours and/or their wages. This miserly strategy is justified and implemented despite the fact that research shows that raising wages would actually “benefit workers, the industry and the overall economy.”

Yet in the midst of Scroogian thinking, a handful of smarter businesses have stepped to the forefront to reject this “austerity” model for a different philosophy right in line with research: pay a good living wage, offer benefits and maximize one of your most important “assets”: your valued workforce. Top on that list of smart retailers is Costco; Tulsa-based convenience chain, QuikTrip, and consumer favorite, Trader Joe’s.

Trader Joe’s is particularly notable as a store that inspires an almost cult-like appreciation from its customers. Founded by its namesake, Joe Coulombe, the precursor of Trader Joe’s was a convenience store launched in Los Angeles in 1958 with the rather unimaginative name, Pronto Market. Deciding it wouldn’t be in his best interest to attempt to compete with the ubiquitous marketplace leader, 7-Eleven, Coulombe ultimately decided to specialize; rumor has it he got the idea of a “South Seas motif” while on a trip to the Caribbean, where he noticed American travelers enjoying and bringing back to the States unique items with an island flair. He opened his first official “Trader Joe’s” in Pasadena in 1967 (the original store is still there!) and it was an immediate hit; a 2008 Business Week article made the point that Trader Joe’s “sells twice as much per square foot than other supermarkets.”

Given its profitability, one might assume that, like Walmart and Target, it was operating under the strategy of categorizing employees as a “business cost” that needs to be minimized and kept under tight control. One would be wrong. From The Atlantic:

Many employers believe that one of the best ways to raise their profit margin is to cut labor costs. But companies like QuikTrip, the grocery-store chain Trader Joe’s, and Costco Wholesale are proving that the decision to offer low wages is a choice, not an economic necessity. All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity. [Emphasis added.]

QuikTrip, Trader Joe’s, and Costco operate on a different model, Ton says. “They start with the mentality of seeing employees as assets to be maximized,” she says. As a result, their stores boast better operational efficiency and customer service, and those result in better sales. [... ]

The approach seems like common sense. Keeping shelves stocked and helping customers find merchandise are key to maximizing sales, and it takes human judgment and people skills to execute those tasks effectively. To see what happens when workers are devalued, look no further than Borders or Circuit City. Both big-box retailers saw sales plummet after staff cutbacks, and both ultimately went bankrupt.

There is also the issue of consumer perception. Places like Walmart and Papa John’s, one a retailer, the other a food service provider, both suffered and continue to take negative PR hits for paying low wages, “nickel-and-diming” employees on the issue of insurance benefits, and appearing to place the burden of economic change and demand on the backs of their workforce, all the more galling when company CEO’s are making multimillion dollar profits. Consumer good-will and the general perception of a business tend to take a beating when those at the helm come off as greedy, unethical, and denigrating of their workforce.

Trader Joe’s, Costco and Quik Trip, on the other hard, have engendered loyalty and expanded their public good will with positive, worker-protective strategies that exhibit the importance they place on their most valued asset: the people working for and with them, whose skills and hard work are essential to a healthy bottom-line. And that is, after all, the goal of any smart company.

Given its profitability, one might assume that, like Walmart and Target, it was operating under the strategy of categorizing employees as a “business cost” that needs to be minimized and kept under tight control. One would be wrong. From The Atlantic:

Many employers believe that one of the best ways to raise their profit margin is to cut labor costs. But companies like QuikTrip, the grocery-store chain Trader Joe’s, and Costco Wholesale are proving that the decision to offer low wages is a choice, not an economic necessity. All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity. [Emphasis added.]


http://www.addictinginfo.org/2013/03...wage-and-wins/
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Old 02-15-2014, 10:05 PM   #31
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Are milk and gas the only things you buy there?



Sorry petegz28, sometimes things are a little more complicated than you seem to understand.

Is there a point to your being butthurt here? Apparently simple addition and subtraction is very complicated for you. That explains your doucheness over the last week or so.
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Old 02-15-2014, 10:07 PM   #32
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The Costco highest membership is $110. If you don't spend enough to get the rewards up to a $50 value they give you a $50 refund (or the difference?) at the end of the year so that your high membership only costs the same as the lower one which is $50. That made it easy for us to go with the higher membership.
Sams has the same, as my parents bought both premium memberships [Sams and Costco] over Christmas.
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Old 02-15-2014, 10:07 PM   #33
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Originally Posted by mr. tegu View Post
The Costco highest membership is $110. If you don't spend enough to get the rewards up to a $50 value they give you a $50 refund (or the difference?) at the end of the year so that your high membership only costs the same as the lower one which is $50. That made it easy for us to go with the higher membership.
I have the high membership, although for me it might not make as much sense as it does for petegz28 (and you, I presume). I live 45 minutes from the nearest Costco. I used to be in the area several times a week so it was convenient, but now I don't have any reason to go there other than for a Costco run so I don't use it as often anymore. I'll probably give it up when it expires this time.
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Old 02-15-2014, 10:08 PM   #34
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Where are you? You can't go to a grocery store here in Olathe and get milk under $4 it seems. Though I have only looked at Hy-Vee, Wal-Mart and Target
St. Louis

Trader Joes and Walmart in Richmond Heights. [where WashU is, taking a class M/W]

The rest south of Tower Grove, and along Gravois. [where I live]
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Old 02-15-2014, 10:12 PM   #35
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Seems once again the Walmart is evil campaign moves forward….

Then there is the rest of the story….http://washingtonexaminer.com/surpri...rticle/2541670

WM may not be Saks Fifth Ave but its not a slave labor sweat shop run by managers with whips
One of the dumber articles you've posted.
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Old 02-15-2014, 10:24 PM   #36
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Have you ever been in a Trader Joes? They are nice but are rather small. They have much less stock and variety then a regular grocery store, no comparison to Walmart or Target.

They also tend to target a wealthier and more selective demographic. You can't really compare their strategies or business plans.
This. In fact Trader Joes is owned by the same parent company as Aldi's. Traders Joes is basically a higher end Aldi's
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Old 02-15-2014, 11:04 PM   #37
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This. In fact Trader Joes is owned by the same parent company as Aldi's. Traders Joes is basically a higher end Aldi's
That, and a single serving version of Sam's club.
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Old 02-16-2014, 02:15 AM   #38
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I'm always amused when people hold up places that cater to rich white people and say "see, this is how Walmart should operate."
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Old 02-16-2014, 06:36 AM   #39
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So on the topic of Walmart vs Costco not being comparable, what about Sams club? Does Sams club pay comparable to costco?

There probably aren't enough truly "quality" employees in the country to give a return on the investment on a national scale, but I do think these companies are a clear example of the benefit of quality employees. If more companies recognize that, it's a positive for the country.
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Old 02-16-2014, 06:53 AM   #40
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So on the topic of Walmart vs Costco not being comparable, what about Sams club? Does Sams club pay comparable to costco?

There probably aren't enough truly "quality" employees in the country to give a return on the investment on a national scale, but I do think these companies are a clear example of the benefit of quality employees. If more companies recognize that, it's a positive for the country.
I haven't been in a Sam's in forever but from what I hear they have a bigger selection of lesser quality products.
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Old 02-16-2014, 06:53 AM   #41
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I'm always amused when people hold up places that cater to rich white people and say "see, this is how Walmart should operate."
QuickTrip caters to rich, white people?
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Old 02-16-2014, 07:55 AM   #42
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Old 02-16-2014, 08:04 AM   #43
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I haven't been in a Sam's in forever but from what I hear they have a bigger selection of lesser quality products.
That was true and may still be depending on the store. The new Sam's in Raymore is almost a duplicate of the Costco in Overland Park. Had not been in a Sam's in a long time since the old one in Grandview was a shithole. The new Sam's was a very pleasant surprise. Costco may have a run for their money if Sam's continues this way. The meat selection was excellent.

The employees we dealt with were a far cry better than the Aisle wandering zombies at Walmart.
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Old 02-16-2014, 08:05 AM   #44
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Great. If Trader Joe's business model is superior to Walmart then, to the extent that they actually compete with one another, eventually Walmart will have to adjust or go out of business.
Why should Walmart have to adjust when the taxpayers help subsidize their workers?
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Old 02-16-2014, 08:11 AM   #45
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Ever been to Quicktrip or Costco???
Don't forget Hobby Lobby. They pay over 11.00 an hour.
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