Just in time for the latest yay Costco article, the new LBO arrived. In response to Andy Stern's analysis, Doug writes:
Stern is writing from the mythical land of the win-win situation. Wall Street's "bias" is well-founded. You need look at only a few numbers to see why. Wal-Mart's profits are 3.5% of sales, Costco's 1.7%. Wal-Mart's return on equity is 21%, Costco's 12%. Over the last two years, Wal-Mart's profits have grown 13%, Costco's 9%... There is no getting around the fact that stockholders' gains are often workers' losses, and vice versa. The old class struggle is alive and well.You think?