Retail giant Costco is on the brink of significant changes as its Chief Financial Officer (CFO), Richard Galanti, announces his retirement. Galanti, who has played a pivotal role at Costco for nearly four decades, is set to leave his position on March 15.
Gary Millerchip, 49, is set to take over as Costco's new Chief Financial Officer (CFO), replacing Richard Galanti. Currently, Millerchip holds the position of Senior Vice President and CFO at Kroger, a role he has been in for 15 years. Before this, he spent two decades working in banking.
Galanti's Legacy: Decades of Growth at Costco
Richard Galanti, a cornerstone of Costco since 1984, isn't leaving the company entirely just yet.
He will continue contributing until January 2025, aiding in the transition period and maintaining his position on Costco's board of directors. During Galanti's nearly forty-year tenure as CFO, Costco experienced remarkable growth. The company's annual sales soared to $239 billion in 2024, a testament to his effective leadership.
Costco now serves 72 million active members and has around 129.5 million cardholders, cementing its status as the largest membership warehouse club in the United States. This growth under Galanti's stewardship reflects his significant impact on the company.
Ron Vachris, Costco's CEO, expressed high regard for Galanti's contributions: "Over his nearly forty years as CFO, Richard has been instrumental in shaping Costco's success. Our shareholders, employees, and business partners highly esteemed him. His long and committed service to the company has been invaluable, and we are profoundly thankful for everything he has done."
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Costco Faces Changes with Galanti's Retirement and Membership Updates
Alongside recent leadership changes and expansion plans, Costco is also navigating the retirement of Richard Galanti, its long-serving CFO. Galanti, known for maintaining the price of Costco's iconic hotdog and drink combo at $1.50 since 1984, has previously hinted at potential increases in membership fees.
Galanti informed investors in September 2023 that a rise in membership fees was inevitable, stating it's a matter of "when, not if." A standard Costco membership costs $60 annually, with executive members paying $120 for additional benefits. These prices have remained unchanged since 2017, and traditionally, Costco has increased fees every five or so years, suggesting that a hike might be overdue.
Regarding membership policies, Galanti has also defended Costco's stricter enforcement of membership card use. The retailer has begun trialing new scanners in select stores to verify memberships upon entry. This initiative aims to curb the non-members' use of Costco's benefits.
Introducing scanners is expected to streamline the entry and checkout processes, making shopping more efficient for members. Galanti discussed this development with CNN, emphasizing its efficiency.
Galanti told The Wall Street Journal that while only a small percentage of members share their cards with non-members, the sheer volume of transactions makes it a significant issue. A company statement further explained that the increase in self-service checkouts has led to non-members using cards that aren't theirs, prompting these changes.
As Costco faces these alterations, Galanti's retirement marks the end of an era for the company, with his contributions leaving a lasting impact on its operations and policies.
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