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Unlike most mass retailers, whose gyrations, machinations, new directions, false starts and management changes routinely make news, you seldom read or hear about Costco, the legendary “club” retailer. Indeed, the only time the Seattle-based retailer makes news is in announcing quarterly earnings reports, new clubs, new markets and the occasional management change.
Among the recent Costco announcements, however, was one of true meaning, lasting significance and, in the world of mass retailing, major importance. Craig Jelinek, the retailer’s longtime (need we add “legendary”?) chief executive, revealed that he is about to retire.
To those who know Jelinek, no explanation is necessary. To those who do not, no explanation is possible.
Most retail leaders rightly claim to be pleased if they leave their organizations in as good shape as it was when they took the job. Jelinek has accomplished more — much more. He has effectively guided an organization that was rightly viewed as an exemplary retailer prior to his arrival. More than that, he has, within the tight confines of Costco’s operating principles and formula, expanded its reach and impact, successfully explored new opportunities and attracted new customers.
To the casual observer, Costco is not much different today from the retailer Jelinek inherited about a decade ago. To those who know, however, the club is much different. He has fine-tuned a merchandise assortment that, nonetheless, has remained relatively stable at around 5,000 SKUs. He has introduced a variety of new services to which club members have enthusiastically responded. He has increased the dollar amount of the average transaction. He has brought in new members while solidifying the pact with existing members that is at the core of Costco’s success. He has expanded the brand’s reach and impact, adding new clubs both in the U.S. and abroad. And he has solidified the legitimate claim that Costco is the finest mass retailer operating in America today.
Internally, Jelinek has been able to add cohesiveness to a management staff that was previously legendary for the caliber, quality and cohesiveness of its management. He has made an efficiently productive management team even more efficient and productive. And he has done it all with his customary, legendary, “aw shucks” management style that consistently attempted, unnecessarily, to position himself as the lucky one, the man Costco plucked from obscurity and gave stature, position and opportunity. Those who know him best respond with one word: Nonsense.
But before we say a final goodbye to Craig Jelinek, we should note that he will remain active at Costco beyond his scheduled relinquishment of the CEO role next month, as he plans to serve the company in an advisory role through April and will stand for reelection to Costco’s board at the January 2024 annual meeting. And he is certain to remain involved in Costco’s plans for its future — if, as we expect, Costco is as visionary a company as we believe it to be. So it is our good fortune to announce that we won’t say goodbye just yet — or hopefully for a long time to come.
Congratulations Craig — you’ve earned all the accolades and goodwill mass retailing has to offer.
