Longtime Costco chief executive Craig Jelinek will step down at the end of the year, the company said Wednesday.
Ron Vachris, Costco’s president and chief operating officer, will replace him.
Costco’s stock was little changed during after hours trading Wednesday, a sign investors were unfazed.
Jelinek has been Costco’s CEO since 2012. The company’s stock has increased five-fold during his tenure.
Costco has 861 warehouses in the world, including 591 in the United States. The company is the third largest US retailer behind Walmart and Amazon.
Costco had around 66 million paid members and 119 million cardholders in 2022, making it one of the largest membership clubs in the world. Costco members pay either $60 for a regular membership or $120 for an executive card every year to shop at clubs.
The company has not raised the cost of its membership since 2017, despite rivals such as Amazon and Sam’s Club raising their membership fees. Costco has hinted it may soon raise its membership price.
This membership model is crucial to Costco’s business, which has boomed during the pandemic.
The fees help boost the company’s profit and offset expenses, allowing Costco to keep its prices down. Costco is known for offering some of the lowest prices in the retail industry.