How Costco Became the Anti-Wal-Mart

How Costco Became the Anti-Wal-Mart - by Steven Greenhouse: Combining high quality with stunningly low prices, the shirts appeal to upscale customers - and epitomize why some retail analysts say CEO 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.'

Mr. Sinegal begs to differ. He rejects Wall Street's assumption that to succeed in discount retailing, companies must pay poorly and skimp on benefits, or must ratchet up prices to meet Wall Street's profit demands.

Good wages and benefits are why Costco has extremely low rates of turnover and theft by employees, he said. And Costco's customers, who are more affluent than other warehouse store shoppers, stay loyal because they like that low prices do not come at the workers' expense.

'This is not altruistic,' he said. 'This is good business.'

He also dismisses calls to increase Costco's product markups. Mr. Sinegal, who has been in the retailing business for more than a half-century, said that heeding Wall Street's advice to raise some prices would bring Costco's downfall.

'When I started, Sears, Roebuck was the Costco of the country, but they allowed someone else to come in under them,' he said. 'We don't want to be one of the casualties. We don't want to turn around and say, 'We got so fancy we've raised our prices,' and all of a sudden a new competitor comes in and beats our prices."

At Costco, one of Mr. Sinegal's cardinal rules is that no branded item can be marked up by more than 14 percent, and no private-label item by more than 15 percent. In contrast, supermarkets generally mark up merchandise by 25 percent, and department stores by 50 percent or more.

"They could probably get more money for a lot of items they sell," said Ed Weller, a retailing analyst at ThinkEquity.

But Mr. Sinegal warned that if Costco increased markups to 16 or 18 percent, the company might slip down a dangerous slope and lose discipline in minimizing costs and prices.

Mr. Sinegal, whose father was a coal miner and steelworker, gave a simple explanation. "On Wall Street, they're in the business of making money between now and next Thursday," he said. "I don't say that with any bitterness, but we can't take that view. We want to build a company that will still be here 50 and 60 years from now."

IF shareholders mind Mr. Sinegal's philosophy, it is not obvious: Costco's stock price has risen more than 10 percent in the last 12 months, while Wal-Mart's has slipped 5 percent. Costco shares sell for almost 23 times expected earnings; at Wal-Mart the multiple is about 19.

Follow the Uranium

by Frank Rich: WELL, of course, Karl Rove did it. He may not have violated the Intelligence Identities Protection Act of 1982, with its high threshold of criminality for outing a covert agent, but there's no doubt he trashed Joseph Wilson and Valerie Plame....

Even so, we shouldn't get hung up on him - or on most of the other supposed leading figures in this scandal thus far. Not Matt Cooper or Judy Miller or the Wilsons or the bad guy everyone loves to hate, the former CNN star Robert Novak. This scandal is not about them in the end, any more than Watergate was about Dwight Chapin and Donald Segretti or Woodward and Bernstein. It is about the president of the United States. It is about a plot that was hatched at the top of the administration and in which everyone else, Mr. Rove included, are at most secondary players.

It Is an Insult to the Dead to Deny the Link with Iraq

by Seumas Milne, editor of the comment section in the Guardian: ...The wall of silence in the US after the much greater carnage of 9/11 allowed the Bush administration to set a course that has been a global disaster. And there is little sense in London that the official attitude reflects the more uncertain mood on the streets. There is every need for the kind of public mourning that will take place in London today, along with concerted action to halt the backlash against Muslim Britons that claimed its first life in Nottingham at the weekend. But it is an insult to the dead to mislead people about the crucial factors fueling this deadly rage in Muslim communities across the world.

The first piece of disinformation long peddled by champions of the occupations of Iraq and Afghanistan is that al-Qaida and its supporters have no demands that could possibly be met or negotiated over; that they are really motivated by a hatred of western freedoms and way of life; and that their Islamist ideology aims at global domination. The reality was neatly summed up this week in a radio exchange between the BBC's political editor, Andrew Marr, and its security correspondent, Frank Gardner, who was left disabled by an al-Qaida attack in Saudi Arabia last year. Was it the 'very diversity, that melting pot aspect of London' that Islamist extremists found so offensive that they wanted to kill innocent civilians in Britain's capital, Marr wondered. 'No, it's not that,' replied Gardner briskly, who is better acquainted with al-Qaida thinking than most. 'What they find offensive are the policies of western governments and specifically the presence of western troops in Muslim lands, notably Iraq and Afghanistan.'

The central goal of the al-Qaida-inspired campaign, as its statements have regularly spelled out, is the withdrawal of US and other western forces from the Arab and Muslim world, an end to support for Israeli occupation of Palestinian land and a halt to support for oil-lubricated despots throughout the region. Those are also goals that unite an overwhelming majority of Muslims in the Middle East and elsewhere and give al-Qaida and its allies the chance to recruit and operate - in a way that their extreme religious conservatism or dreams of restoring the medieval caliphate never would. As even Osama bin Laden asked in his US election-timed video: if it was western freedom al-Qaida hated, "Why do we not strike Sweden?"

The second disinformation line peddled by government supporters since last week's bombings is that the London attacks had nothing to do with Iraq....

Rove-gate: Who Leaked to the Leakers?- by Justin Raimondo

by Justin Raimondo: "The fast developing scandal seemingly centered around Rove and a few journalists has only begun to unfold. By the time it is over, we'll have the War Party - or, at the very least, a few high profile representatives - in the dock, and then the fun will really begin."

pretty hate machine

Talking Points Memo: by Joshua Micah Marshall: : I think it's only late in the evening, when the email traffic slows and the other distractions fade, that I can really see and marvel at the collosus that is, as Brock calls it, the Republican noise machine, with its ferocity that is only surpassed by its nihilism.

Now we can see in full view what we've seen again and again in recent years, the favored tactic: terror by grand moral inversion, the lie so total and audacious that it almost knocks opponents off their feet.

John Kerry decorated war hero? No, coward and showboat....

New Spielberg project tackles terrorism

First he tackled the Holocaust, courting controversy but then silencing many of his critics with a masterpiece of cinema in the form of Schindler's List.

Now director Steven Spielberg is taking on another Jewish issue, with a film on the aftermath of the massacre of 11 Israeli athletes at the Munich Olympics.
Production has already started on the film - still untitled - which chronicles a bloody series of assassinations carried out by Israeli secret agents against the Palestinian terrorists responsible for the 1972 killings.

The incident is one of the most controversial issues in modern Israeli and Jewish history. The series of assassinations ended in scandal when it was revealed that Mossad agents had murdered an innocent Moroccan waiter in Norway after a case of mistaken identity.
Spielberg's project has been surrounded in secrecy, mindful of the dangerous territory the film will touch on and nervous of being seen either to condone or condemn the Israeli action. In a carefully worded statement released by his studio last week, Spielberg said the film would look at '...a defining moment in the modern history of the Middle East'.
He said he would seek to humanise the bloody events. 'Viewing Israel's response to Munich through the eyes of the men who were sent to avenge that tragedy adds a human dimension to a horrific episode that we usually think about only in political or military terms,' he said.

The film will begin with the terrorist attacks. Though German police persuaded the Palestinian terrorists out of the Olympic village, a shoot-out at an airport resulted in the death of all 11 athletes, one policeman and five of the eight terrorists. The main plot of the film then follows the vengeful Mossad teams as they track down members of Black September and eliminate them, one by one. But as the assassinations continue, some of the characters develop doubts about their mission and the moral quagmire of revenge in which they have become trapped.

Lessons of Ireland not applied to Middle East

The price of occupation by Taqiq Ali: During the last phase of the Troubles, the IRA targeted mainland Britain: it came close to blowing up Margaret Thatcher and her cabinet in Brighton. Some years later a missile was fired at No 10....

The bombers who targeted London yesterday are anonymous. It is assumed that those who carried out these attacks are linked to al-Qaida. We simply do not know. Al-Qaida is not the only terrorist group in existence. It has rivals within the Muslim diaspora. But it is safe to assume that the cause of these bombs is the unstinting support given by New Labour and its prime minister to the US wars in Afghanistan and Iraq.

One of the arguments deployed by Ken Livingstone, the mayor of London, when he appealed to Tony Blair not to support the war in Iraq was prescient: 'An assault on Iraq will inflame world opinion and jeopardise security and peace everywhere. London, as one of the major world cities, has a great deal to lose from war and a lot to gain from peace, international cooperation and global stability.'

Most Londoners (as the rest of the country) were opposed to the Iraq war. Tragically, they have suffered the blow and paid the price for the re-election of Blair and a continuation of the war.

Ever since 9/11, I have been arguing that the 'war against terror' is immoral and counterproductive. It sanctions the use of state terror - bombing raids, torture, countless civilian deaths in Afghanistan and Iraq - against Islamo-anarchists whose numbers are small, but whose reach is deadly. The solution then, as now, is political, not military. The British ruling elite understood this perfectly well in the case of Ireland....

The struggle against terrorism cannot be won by military means

Guardian Unlimited : "In the absence of anyone else owning up to yesterday's crimes, we will be subjected to a spate of articles analysing the threat of militant Islam. Ironically they will fall in the same week that we recall the tenth anniversary of the massacre at Srebrenica, when the powerful nations of Europe failed to protect 8,000 Muslims from being annihilated in the worst terrorist act in Europe of the past generation.

Osama bin Laden is no more a true representative of Islam than General Mladic, who commanded the Serbian forces, could be held up as an example of Christianity. After all, it is written in the Qur'an that we were made into different peoples not that we might despise each other, but that we might understand each other.

Bin Laden was, though, a product of a monumental miscalculation by western security agencies. Throughout the 80s he was armed by the CIA and funded by the Saudis to wage jihad against the Russian occupation of Afghanistan. Al-Qaida, literally 'the database', was originally the computer file of the thousands of mujahideen who were recruited and trained with help from the CIA to defeat the Russians. Inexplicably, and with disastrous consequences, it never appears to have occurred to Washington that once Russia was out of the way, Bin Laden's organisation would turn its attention to the west.

The danger now is that the west's current response to the terrorist threat compounds that original error. So long as the struggle against terrorism is conceived as a war that can be won by military means, it is doomed to fail. The more the west emphasises confrontation, the more it silences moderate voices in the Muslim world who want to speak up for cooperation. Success will only come from isolating the terrorists and denying them support, funds and recruits, which means focusing more on our common ground with the Muslim world than on what divides us."

The Stain of Torture

The Stain of Torture: Having served as a doctor in the Army Medical Corps early in my career and as presidential physician to George H.W. Bush for four years, I might be expected to bring a skeptical and partisan perspective to allegations of torture and abuse by U.S. forces. I might even be expected to join those who, on the one hand, deny that U.S. personnel have engaged in systematic use of torture while, on the other, claiming that such abuse is justified. But I cannot do so....

Today, however, it seems as though our government and the military have slipped into Joseph Conrad's "Heart of Darkness." The widespread reports of torture and ill-treatment -- frequently based on military and government documents -- defy the claim that this abusive behavior is limited to a few noncommissioned officers at Abu Ghraib or isolated incidents at Guantanamo Bay. When it comes to torture, the military's traditional leadership and discipline have been severely compromised up and down the chain of command. Why? I fear it is because the military has bowed to errant civilian leadership.

America cannot continue down this road. Torture demonstrates weakness, not strength. It does not show understanding, power or magnanimity. It is not leadership. It is a reaction of government officials overwhelmed by fear who succumb to conduct unworthy of them and of the citizens of the United States.

Wow! Mr Burton Lee not only commits thought crime (doubting our feckless leader) but he commits his felonious thoughts to paper! I guess his having acted upon his ethical commitments makes Mr. Lee not only a member of the 'reality-based community' but also 'objectively pro-terrorist.' Happy July 4th!