The number of SKUs is irrelevant. The number of employees are what matter if we're talking about salaries. Having more SKUs doesn't push labor productivity lower, having more SKUs WITH more employees would push labor productivity lower. If they're doing it with the same or fewer employees it would be the exact opposite.
As for the stores being less profitable, I would imagine it's a self-fulfilling prophecy. They pay the vast majority of their employees welfare-inducing wages which is an instant turnoff to anyone in the middle class who actually cares about companies taking care of their employees.
Not sure how this fits in, but my two stints at Costco each had high layoff and rehire rates. Getting the "full time Costco " job was desired but hard. I never knew how or why so many came back after post Christmas layoff and could survive.
I do not believe from my Wally experience I ever hear of "temporary" hires that really get termed. If you are doing the job well you stay if you want
That's been my experience in almost every job I've worked, from McDonald's to Big Telecom. If you impress people they'll bend whatever rules they have to bend to make sure you stay.
