Several questions regarding the information in the case.

Some retailers adopt a strategy of offering low prices made possible by paying low wages, while others are increasingly choosing to invest in higher wages to enhance customer service. For example, Costco is known for paying its employees well and providing good benefits, which contributes to better customer service and overall business success. This trend of paying more to employees is becoming more common as companies recognize the long-term benefits of higher employee satisfaction, improved customer experiences, and stronger business performance. The shift raises important questions about the sustainability and impact of these wage practices on the future of the retail industry.

 

Compare your shopping experiences at retailers such as Costco, Nordstrom, or Whole Foods with experiences you may have had at Walmart, Sears, or Kroger.

 

Under what circumstances might Costco have to start paying its workers less?

 

Costco has a policy of not hiring business school graduates because it wants employees to start at the bottom and work their way up. What are the advantages and disadvantages to this approach?