In corporate America treating both employees and consumers with respect is often something that is lacking, what could be called a ‘dual strategy’. Where the Walmart’s are choosing to pay close to minimum wage, have narrow aisles and fewer workers but are able to provide more goods at cheaper costs. Target is of a juxtaposed philosophy in which wider aisles and better service (still with relatively low wages) will offset the higher cost of the product for which the customer is purchasing increasing its appeal. So who really has it right? The answer to that can be found in Bloomberg Businessweek under an article by Brad Stone titled “Costco CEO Craig Jelinek Leads the Cheapest, Happiest Company in the World.” With an average wage of $20.93, the employees are positively thrilled but what about the customers? Some may dispute that people don’t want to pay the yearly-fee of $55 just to shop, but the truth is it is this that keeps them coming back. It creates a loyalty to the company while creating switching costs placed on the consumer and with more than a 90% return rate it is proven to work. Here, both customer and employee alike are satisfied.

Bloomberg Business Week, June 6, 2013