W. Jelinek on business model
From Costco CEO Craig Jelinek: We're seeing more young people sign up for memberships · · CNBCTelevision
“Our concept has always been to sell merchandise for the lowest possible price, and that's the way we run our business. That's the way we run our business for the last 40 years, and that's how we will continue to run the business.”
On , W. Jelinek, Company Advisor & Director at Costco, spoke about business model during Costco CEO Craig Jelinek: We're seeing more young people sign up for memberships on CNBCTelevision.
About W. Jelinek
Costco CEO Craig Jelinek has stated that the company is seeing a significant increase in younger members signing up, though he noted that their initial purchasing power is lower than that of older generations. He has emphasized that Costco operates as a "volume company, not a margin company," a philosophy he said has guided the business for 40 years. Jelinek has also highlighted the company's strategy of offering high-quality goods at low prices, citing items like a $2,000 bottle of wine and giant plush teddy bears as examples of "exciting merchandise" that drives the brand. During the COVID-19 pandemic, Jelinek observed strong sales in food, electronics, and home goods, while travel and gasoline businesses declined. He expressed confidence that brick-and-mortar retail would remain important and noted that membership renewal rates remained around 91%. Jelinek has also discussed the company's approach to employee compensation, stating that Costco aims to pay high wages and offer good benefits while maintaining profitability.