The following information from a BusinessWeek article, "The Costco Way," in the April 12, 2004, issue, reveals key differences between Costco's and Wal-Mart's wage strategies. Explain how this information relates to the discussion in this chapter of discretionary expenses.

*Excludes 25% of workforce that is lower-paid part-timers.
**Those on the job for less than a year aren't covered.
***For all of Wai-Mart.
****Over the past five years in the UnitedStates.

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Costco Wal-Mart's Sam's Club Average hourly wage Annual health costs per worker Covered by heal th plan Annual retirement costs per worker Covered by retirement plans Employee turnover Labor and overhead costs Sales per square foot Profits per employee Yearly operating-income growth $15.97 $11.52* 5,735 3,500 82%, 47% 1,330 $ 747 91% 6%, a year 9.8% of sales 64%, 21% a year 17%, of sales.. $ 795 $13,647 $ 516 $11,039 10.1% 9.8%,