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CLOSING Case - Low Prices, High Pay

Most major retailers follow a simple path-low prices made possible in part by low wages and minimal benefits for their employees.

Case Questions

1. Compare your shopping experiences at retailers such as Costco, Nordstrom, or Whole Foods with experiences you may have had at Walmart, Sears, or Kroger.

2. Under what circumstances might Costco have to start paying its workers less?

3. Costco has a policy of not hiring business school graduates because it wants employees to start at the bottom and work their way up. What are the advantages and disadvantages to this approach?

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