Costco, on the other hand, reported net profits as percentage of revenue of 1.6% in 2011. This does not mean that it is “losing money.” The company also paid $1 billion in taxes earlier this year.
The tale of the updated comparisons between Costco and Wal-Mart show that the world’s largest retailer is struggling. Although it has made a number of improvements in employee pay, benefits and retention since the mid-2000s, it still struggles to keep associates on the job. Wal-Mart employees just received notices that their share of health care costs would increase between $5 and $24 per paycheck, causing some associates to drop coverage altogether.