This is a very simplified way of thinking about it. Costco manages to be profitable while paying more than the average to retail workers in an industry with thin margins. Whole Foods managed this too until it was acquired.
It's funny how the US is often presented hyper innovative, and economically dynamic, while at the same time it is claimed that basic issues like universal health care and workers rights - problems that are solved in many other developed countries - are intractable in the US because of "thin margins" or "the deficit".
Costco operates in the same market conditions Walmart. It's just that their revenue to employee over twice as high, so they can sustainably pay a small number of high-quality workers more rather than a large number of lower-quality workers.
Pro-labor operates under the false assumption that employing a small number of well-paid workers is better for society than employing a large number of lower paid workers. Let's say Walmart could afford to pay a "living wage" by replacing their shelves with pallets, laying off most of their shelvers, and redistributing their wages to the other employees. Would that really be any better?
It's funny how the US is often presented hyper innovative, and economically dynamic, while at the same time it is claimed that basic issues like universal health care and workers rights - problems that are solved in many other developed countries - are intractable in the US because of "thin margins" or "the deficit".