Could paying a living wage help retail make better profits?
That seems to be the conclusion to be drawn from reading The Trader Joe's Lesson: How to Pay a Living Wage and Still Make Money in Retail, Sophie Quinton's story in the Atlantic which is subtitled "Companies that invest in higher salaries for low-level employees find success in a competitive market."
It focuses on three chains that pay their employees far more than most competitors, and treats employees as an asset, not as a cost to be contained or shed whenever possible. Those three chains are QuikTrip, Trader Joe's, and Costco Wholesale.
It focuses on three chains that pay their employees far more than most competitors, and treats employees as an asset, not as a cost to be contained or shed whenever possible. Those three chains are QuikTrip, Trader Joe's, and Costco Wholesale.
All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity.QuikTrip pays itsentry-level employees around $40,000 plus benefits, while the average cashier makes $20,230.
Those high wages didn't stop QuikTrip from prospering in a hostile economic climate. While other