Ron Vachris Succeeds Current Costco CEO, Craig Jelinek

CEO of Costco, Craig Jelinek, is set to step down at the end of this year, as announced by the company on Wednesday. Ron Vachris, who currently holds the position of President and Chief Operating Officer at Costco, will take over as the new CEO.

Jelinek has been at the helm of Costco since 2012, and the company has witnessed a remarkable five-fold increase in its stock value during his tenure.

Costco, a retail giant, operates 861 warehouses globally, including 591 within the United States. It stands as the third-largest retailer in the United States, trailing behind Walmart and Amazon.

In 2022, Costco boasted approximately 66 million paid members and 119 million cardholders, solidifying its position as one of the largest membership clubs on a global scale. Costco members are charged an annual fee of either $60 for a regular membership or $120 for an executive card, granting them access to the company’s clubs.

Notably, Costco has refrained from raising its membership fees since 2017, even as competitors like Amazon and Sam’s Club have increased their fees. Costco has hinted at the possibility of raising its membership prices in the near future. This membership-based business model has been pivotal to Costco’s success, especially during the pandemic.

The fees collected from members contribute significantly to the company’s profits and help offset operational costs, allowing Costco to maintain its reputation for offering some of the most competitive prices in the retail industry.

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