Costco, the second-largest retailer in the world, has a new CEO who started as a forklift driver at the company. Ron Vachris, a 41-year veteran of Costco Wholesale, took on the role of CEO in January. He began his career at Price Club, which later merged with Costco, and worked his way up through the ranks. Vachris played a crucial role in the company's success, doubling net sales to $238 billion between 2016 and 2023 and increasing membership to 128 million people. He follows the leadership style of Costco's founder, Jim Sinegal, by valuing the input of his team members and trusting their expertise [147c5654].
Vachris has ambitious plans for the company, with a focus on international expansion and improving e-commerce. He aims to protect Costco's strong culture and employee loyalty, which are key factors in the company's success. Costco sets itself apart from other retailers by offering a limited selection of products, with only 3,800 items compared to about 120,000 at a typical retailer. Vachris intends to maintain this strategy and continue delivering strong results for the company [147c5654].
In addition to Vachris' leadership, Costco continues to offer great deals and savings to its members. The company is currently running a range of sales and deals across various departments, including groceries, home improvement, clothing, and furniture. Some of the best buys this month include discounted prices on Milton's Cauliflower Crust Pizza, Home and Body Hand Soap, and the Fiskars Lopper and Hand Pruner Set. Costco members can take advantage of these offers in-store, and the products have received positive reviews from customers [63c25b47].
Costco's success is also attributed to its unique business model, which relies on membership fees and selling items at cost or less. This allows the company to maintain low prices and attract loyal customers. Costco's famous $1.50 hot dog combo meal has remained the same price since 1985, despite decades-high inflation. The company offsets the losses from selling hot dogs by raising prices on other goods. Costco's free samples, distributed by Club Demonstration Services (CDS), are another major draw for customers. Samples are carefully curated to create a sales boost, and customers can enjoy unlimited samples. Timing visits to Costco for maximum samples is important, with more vendors and samples available on weekends [32e1ba26].
While Costco continues to dominate the warehouse club industry, it faces increased competition from Sam's Club, a new supermarket chain owned by Walmart. Sam's Club has been rapidly expanding across the US, targeting areas with high suburban populations. The company plans to open 30-45 new store locations in 2021. Although Sam's Club does not offer the same range of services as Costco, it has been filling the void left by Walmart's closure of some historic stores. Sam's Club is expected to become the second-largest membership warehouse club market behind Costco [63c25b47].