well i don't agree with the analogy,the simple reason is that both the companies have different target customers and entirely different business model.
there is no question of being friendly with poor or with rich it is simply a business.

What are we to make of this ... Wal*Mart is all about value and Costco is more about values. Both bring low prices to market. Wal*Mart does it by any means necessary and Costco does it by all means purposely. Costco seems to have more of social conscious and thus, are more conscientious in the decisions they make to bring low prices to shoppers.

For those who wish to read the full NYT article and a related analysis from the Wall St. Journal, they are reproduced in their entirety at http://ReclaimDemocracy.org/walmart (along with an enormous library of articles, studies and commentaries on Wal-mart).

The REASON the people are poor in areas Wal-Mart is in, is exactly BECAUSE wal-mart is there, and the philosophy that wal-mart brings to companies everywhere.

Related article about Wal-Mart trying to attract the wealthier shoppers like Costco and Target does.

http://www.usatoday.com/money/industries/retail/2005-08-04-walmart-cover...

If you've ever shopped at the two stores, you will see that Costco has higher quality merchandise than Wal*Mart/Sam's Club. Is it more expensive? If you are shopping for basics, like toilet paper, cereal, fresh chicken, produce, or underwear, it's not any more expensive than shopping from the Sons of Sam. I see more mini-vans than Escalades in the parking lot when I'm at Costco.

However, what brings in the higher income customers are the non-necessities like designer clothes, big-screen TV's, and hot tubs. Even so, the non-necessities are a good value. I was in Costco last week and they had men's long-sleeve Calvin Klein dress shirts for $16. $16? For something that would cost me at least $40-50 if I went to Nordstrom or even JCPenney's?

Most people with lots of money know a good buy, but (to perhaps push a stereotype) wouldn't be caught dead at Wal*Mart, surrounded by all the shoddy crap. It just also happens to be the case that people that aren't so rich can also afford and enjoy high-quality merchandise thanks to Costco.

If they can pay their people well and retain them longer while maintaining their quality of goods and services, it's good for everyone.

One important contrast to consider is that Costco is a "Club" store. One pays a membership fee to shop there. WalMart is available to the masses. (Consider, WalMart operates a club store as well - Sam's Club). By virtue of charging a premium to shop at its stores, members are rewarded with "Deals" and indeed do shop WalMart Supercenters for "Values".

Another point, WalMart is changing their strategy in retail to try to steal away "the rich" consumer from Target in coming days.

If you shop both you'll find that prices are comparable, but Costco doens't have the name recognition or the market to build in areas of lower population, as Wal-Mart does. Wal-Mart could use the same pay structure as Costco, but it means the "haves" would need to fund the "have-nots" and in this America money is valued more than character. WWJD?

This is a classic miopic view point. Do you want to make more or spend less? Why can't you make more and spend less? Why can't you work at Costco and shop at WalMart?

When you work at Tiffany, you don't only buy at Tiffany.

Erm, let me understand this correctly: If a company pays its employees more, that makes it a "friend of the rich?"

It seems to me that the way to cater to rich people is to hire people for as little as possible, then pass those savings on to the customers, thus enabling said customers to stay rich.

Clearly, the statistics show that Costco is attracting a wealthier customer base than Wal-Mart. But I don't see how paying your workers better could possibly be a craven ploy to get rich people to shop your store. The only way I can see employee wages factoring into the average person's decision to shop at a store is if higher wages translate into more competent, more enthusiastic service.

More likely, though, Costco is just selling less craptastic stuff. Rich people love uncraptastic stuff, or so I hear. Ask any of Sam Walton's kids.