Maybe you’ve never pondered what a weird business Costco is, when you’re navigating your boat-like cart toward a gallon tub of mayonnaise in one of its crowded, cavernous warehouses. But CNBC did.
(As reported by SeattlePI.com) Read the article
A major reason Jim Sinegal is retiring as CEO of Costco Wholesale on New Year’s Eve, one day before he turns 76, is his complete faith in his successor, Craig Jelinek. “He understands this business backwards,” Sinegal said. “He understands it better than I do. He’s hardworking, he’s intelligent, he’s well-liked, he’s respected, he’s fair — all the things you want from a manager.”
Jelinek’s background also resembles Sinegal’s. Both attended San Diego State University and spent years working for Sol Price at Fed-Mart; Jelinek joined Costco just months after Sinegal and Jeff Brotman opened it in 1983.
Read the rest of interview (as reported by The Seattle Times)
On New Year’s Eve, Costco Wholesale co-founder Jim Sinegal will step down as CEO. He will hand off the job he loves and his open-walled office to Craig Jelinek, a veteran Costco executive whom Sinegal considers “almost a founder.” He will turn 76 on New Year’s Day and stay for a yearlong transition before retiring to just the board of directors.
As Sinegal’s days of wearing the silver ID badge reserved for 25-year employees wane, he talks about how it all started, companies staying true to themselves and why he was willing to spend $19 million to kick the state out of the liquor business.
Read the rest of his interview (as posted by The Seattle Times)
Sears Holdings Corp. has agreed to sell its Craftsman tool line through Costco clubs nationwide, marking the Hoffman Estates-based retailer’s boldest step yet in distributing exclusive in-house brands outside its namesake stores.
Craftsman hand tools, power tools and tool storage units will start appearing on Costco shelves as early as Saturday, Sears told the Chicago Tribune in an interview Tuesday. The Craftsman tools are slated to roll out to all of Costco Wholesale Corp.‘s roughly 430 U.S. stores this year, with the assortment varying by location. Read the rest of the article
(As reported in the Chicago Tribune Business section)
Even when Costco Wholesale co-founder and Chief Executive Officer Jim Sinegal talks about leaving the company he built into the country’s third-largest retailer, he exudes his quirky mix of humble, frank and feisty.
“It’ll be an upgrade,” Sinegal joked about being replaced as CEO on Jan. 1 by President and Chief Operating Officer Craig Jelinek. “He is well-liked and smart and energetic and all the things that I used to be.”
(As reported in The Seattle Times)
BJ’s Wholesale Club delivered healthy sales this spring. In April, the wholesale club retailer registered an 8.5% sales increase, and in May the company’s sales increased $7.4% from the same period the previous year. But the company has been seen as facing stiff competition from Costco, and now the company will accept an offer from two leading investment firms to buy the chain with the ambition of enhanced competition against Costco in the future.
With 190 wholesale club retail stores in 15 states, Westborough, Massachusetts-based BJ’s (NYSE: BJ) has performed well across all categories this year, improving across all categories, from beauty care products to coffee and small appliances. But analysts have been neutral on BJ’s stock because of stiff competition that’s coming on fast from Costco (NASDAQ: COST).
(as reported by IB Times)
Find out which retailers rank the highest in customer service, as reported by ChainStoreAge.com
Amazon.com, Kohl’s Department Stores and Costco Wholesale ranked tops in customer service. according to a new research report published by market researcher Temkin Group.
Costco has posted a net sales increase of 11% for the 3-month period ending February 13, 2011. Final sales numbers reached USD 20.45 billion. Other second quarter results for the company included:
– A five percent increase in comparable sales in the US and a 12% increase internationally – giving a total (comps) sale increase of seven percent.
– Without including the financial effects of gasoline inflation and stronger foreign currencies, comps for Costco posted an increase of three percent domestically and eight percent internationally, tallying an overall total increase of four percent.
– Net income increased to USD 348 million; a significant financial jump of 16.4%.
– Mexico sales contributed to a three percent total Q2 increase for Costco. The company has a 50% owned joint business venture with the Latin American country that commenced on a prospective basis during the company’s 2011 fiscal year.
As of early March of this year, Costco operated a total of 581 stores (424 in the US and Puerto Rico, 80 in Canada, 22 in the UK, seven in Korea, six in Taiwan, nine in Japan, one in Australia, 32 in Mexico). Costco is planning to open either 15 or 16 new locations by the end of the fiscal year. These warehouses will include one relocation and one re-opening.
Costco Wholesale has posted higher same-store sales than originally predicted – causing the company to buy back its own stock and raise its dividend. Its aggressive overseas expansion has left the company unable to fund its own growth without issuing additional shares. The financial forecast for the retailer looks extremely impressive. Analysts are predicting a continued upsurge in the company’s growth…(read more)
Southern California rains are being attributed to Costco’s slumping consensus figures. Despite the bad weather, the company’s global sales increased by 11% for the five-week period ending January 2nd. The total company comp estimates were in congruence with analysts’ financial forecasts, yet the U.S. gain of 3% was lower than the 3.9% consensus figure…Read More