this post was submitted on 05 Jan 2026
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Odd how Costco, which pays people well and takes care of their employees so much that people proudly share how long they've worked there on their name tag, doesn't suffer from this problem.
Because Costco isn't run for maximum short term profit. And a lot of people think it's run poorly because of this and is an example of bad business.
The issue is what you think the endgoal of a business is.
Costco tends to focus its locations in large municipalities with high throughput, while Walmart built its business model on rural monopolization of retail where it could be feast or famine any given week. Costco optimized around sales flow, while Walmart optimized around margin per unit sold.
Both have been incredibly profitable over their lifetimes. Both have benefited from cities and states effectively paying subsidies to attract Big Box retailers that would drive out their smaller competitors. Both are, fundamentally, capitalist enterprises fixated on maximizing profit surplus.
The "problems" Walmart faces are problems pushed onto staffers and shoppers in markets where retail sales have declined. The "solutions" that Costco landed on only seem to work in wealthier and denser neighborhoods, where retail sales jobs are still the bottom rung of the economy.