Costco Wholesale Corporation (NASDAQ:COST), the wholesale retailer, confirmed its long-time chief executive officer Craig Jelinek is stepping down, with Ron Vachris, the current chief operating officer, taking over from January 1, 2024.
Jelinek, 71, succeeded co-founder James Sinegal back in 2012 as CEO and during his 12 years at the helm, the company’s share price has rocketed by close to 500%.
His replacement, Vachris, has been with Costco for over 40 years, working his way up from a forklift driver.
A company statement said: “Craig and Ron have worked hand in hand over the last twenty-one months in Ron's role as president and for many years before that. This is the culmination of the long-standing succession plan that Craig has discussed with the board.”
Costco's stock has surged 26% this year, outperforming the S&P 500 and other retailers due to pandemic and inflation-driven sales growth, especially among customers who stocked up during lockdowns and sought relief from inflated grocery and fuel prices.
Sales over the past year have remained robust at the wholesaler, although there was a dip in some discretionary categories like jewellery and electronics.
In the last quarter, foot traffic increased by 5%, but the average transaction amount in the US dropped by nearly 4.5%.
Jelinek will stay until April in an advisory role and will keep his seat on the board of directors.
Shares in Costco remained flat in after-hours trading, having closed in the US at around $574.