>>I think that this guy is saying that Wal-Mart can't do what Costco does because it has more SKUs and thus a higher density of employees. But TJ's density is m

>>I think that this guy is saying that Wal-Mart can't do what Costco does because it has more SKUs and thus a higher density of employees. But TJ's density is much higher still, and it pays like Costco does. It isn't the density per se, it is the density of a a much larger store that doesn't have the margins that trader joes has. They are two fundamentally different business models. Retails stores targeted at upscale consumers can afford to spend on salaries to give the service that their customers want. Wal-Mart needs low prices and lots of products to satisfy theirs.