Wall Street has always complained about how Costco runs their business, such as gross margin is too small. Now, they don't like that Costco is still paying a $2.00/hr. hazardous pay to their employees.
In the meantime, Costco continues to grow by leaps and bounds. And... Wall Street continues to carp about Costco's way of doing business.
To Wall Street I say hogwash. Go back to creating those complicated risky securities that they are so good at creating and forget about analyzing smart and well-run business. Costco is doing so well because they take care of ALL their stakeholders - customers, shareholders and...employees.
Who likes to shop at stores with unhappy employees and reduced staffs? I am sure there are plenty of them owned by PE who grind their employees into the dust to squeeze "every last drop" of profitability.
You never want to cut the head off the golden goose. Feed it, nurture it and it will continue to lay golden eggs for years to come!
Trader Joes is a perfect example of how to work with employees. They stock the shelves during the day and management ENCOURAGES employees to interact with customers. What a unique idea! Gosh, now I wish they were public.
Do you remember the last time you visited a doctor who was so rushed to get "throughput" that he didn't have time to answer your questions? Did you go back to him? Customer service is becoming a long lost art.
Always remember happy employees = happy customers = happy shareholders. It can be that simple.
Wall Street's opinion? Who cares!
