Wednesday, November 30, 2005

Wal-Mart Wages

Wal-Mart pays wages about 16% below those paid by other large retailers. If Wal-Mart were to pay wages comparable to other large retailers it would cost them ~2% of sales. So an item priced $1 would cost $1.02 instead. If they did this, their employees would make a living wage and Wal-Mart would still out-compete all other retailers. So why doesn't Wal-Mart do this? I guess because they want to make 11 billion a year in profits instead of 10.78 billion dollars. Where are their values?

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