Costco CEO Craig Jelinek will step down by the end of the year after a more-than decade reign in which the membership warehouse reached new heights, the company announced Wednesday.
Jelinek, 71, — who took over the chief executive role from Costco co-founder James Sinegal in 2012 — will serve in an advisory role through April 2024 and will continue as a member of Costco’s board, the company said.
Costco’s president and chief operating officer Ron Vachris — who’s worked for the company for 40-plus years — will step up as chief executive come the new year.
Vachris, 58, started at Costco as a forklift driver before finding his way into the management ranks, where he has served in multiple major roles related to the Issaquah, Wash.-based retailer’s merchandising and business operations.
Representatives for Costco did not immediately respond to The Post’s request for comment.
Jelinek is stepping down from the top job after years of strong sales growth seen at the company, especially through the pandemic, as shoppers switched to more affordable options for daily essentials.
Costco’s share price has increased five-fold and annual revenues surged from $99 billion when he first started to $242.3 billion in the latest fiscal year ended in August.
All the while, the cost of a Costco membership has been little changed.
Executives at the Seattle-based company, which has 591 warehouses nationwide, recently told its 130 million US members that it won’t be raising prices this year — an unexpected move considering Costco has historically increased its annual membership by $5 every five years.
Costco’s basic membership, known as Gold Star, has been $60 per year since 2017 — when it raised the price by $5 for the first time since 2011.
Its Executive Membership runs customers $120 per year, plus gives members additional discounts and a 2% return on qualifying purchases.
However, an additional price increase is a “question of when, not if,” Costco’s Chief Financial Officer Richard Galanti said on a call with investors following the release of its fiscal fourth-quarter results last month.
“We’ll let you know when we know,” Galanti added. “So, you know, stay tuned. We’ll keep you posted.”
Meanwhile, Costco has been adapting to ever-changing consumer shopping habits by adding as many as 50 so-called “smaller ticket indulgent items” like snacks that Galanti said has increased the number of items shoppers are putting in their baskets.
Credit: Source link
