How Costco Became the Anti-Wal-Mart - New York Times

How Costco Became the Anti-Wal-Mart - New York Times: "But the pi�ce de r�sistance, the item he most wanted to crow about, was Costco's private-label pinpoint cotton dress shirts. 'Look, these are just $12.99,' he said, while lifting a crisp blue button-down. 'At Nordstrom or Macy's, this is a $45, $50 shirt.'
Combining high quality with stunningly low prices, the shirts appeal to upscale customers - and epitomize why some retail analysts say Mr. Sinegal just might be America's shrewdest merchant since Sam Walton.
But not everyone is happy with Costco's business strategy. Some Wall Street analysts assert that Mr. Sinegal is overly generous not only to Costco's customers but to its workers as well.
Costco's average pay, for example, is $17 an hour, 42 percent higher than its fiercest rival, Sam's Club. And Costco's health plan makes those at many other retailers look Scroogish. One analyst, Bill Dreher of Deutsche Bank, complained last year that at Costco 'it's better to be an employee or a customer than a shareholder.' "