Why Walmart and CostCo Are So Different

[Gormy Cuss]

10. McArdle seems to be on a "Dump on that commie Costco" mission.

Here she dumps on Costco because they outsource food demonstration. The demonstrators are paid less than Costco employers and don't qualify for benefits because they're all part timers--although based on the wages cited ($11/hr) they're still better paid than many part time Walmart employees. Her fantasy that they'd be better off working for Sam's Club because they would qualify to move up is laughable. At Sam's Club they may be eligible for benefits as full time employees but as 12 hour/week part timers? Bloody unlikely.

http://www.bloomberg.com/news/2013-08-28/costco-s-second-class-citizens.html

That said, Costco could do better by this contract employees.

eta: I was wondering why McArdle just attached a link to a 2008 article rather than do her own reporting. Oh look! in 2010 Walmart started outsourcing their food demonstrations too.

http://www.nwitimes.com/business/local/sam-s-club-layoff-targets-product-demonstrators/article_56f758a7-ccc5-5445-99e4-50757d64b4d5.html