Richard Galanti on talent strategy
From S13E7: Richard Galanti · · What Fuels You Podcast
“We don't hire MBAs — we don't recruit on college campuses at business schools; everybody's grown up from within so we're a really unique specimen in that regard. By the way it's worked wonderfully.”
On , Richard Galanti, Executive Vice President, Chief Financial Officer & Director at Costco Wholesale Corporation, spoke about talent strategy during S13E7: Richard Galanti on What Fuels You Podcast.
About Richard Galanti
Richard Galanti, the longtime executive vice president, chief financial officer, and director of Costco, has discussed the company's performance and strategy in several interviews. He noted that during the COVID-19 pandemic, Costco benefited operationally as consumers shifted spending from travel and entertainment to home goods, furniture, and electronics. Galanti described Costco as "the extreme value proposition," stating that the company marks up goods across categories by an average of 12 to 13 percent, compared to higher markups at supermarkets, home improvement centers, and apparel stores. He reported that for the fiscal year ending in August 2022, Costco had over $223 billion in sales, with about a quarter coming from its Kirkland Signature brand, which he said must be at least as good as leading national brands and sold at least 20 percent lower. Galanti stated that the company has a strong net cash position, owns 82 percent of its fixed assets, and buys back stock daily, increasing purchases when the price dropsikuha. Galanti also addressed Costco's approach to growth and operations. He said the company opens about 25 new warehouses annually, with roughly two-thirds in the U.S., and sees continued opportunities for domestic expansion. Regarding membership fees, he stated it is a question of "when, not if" they will be raised, but the company does not need to act immediately given economic conditions. Galanti noted that Costco does not recruit MBAs from college campuses and promotes from within, with warehouse managers typically having 16 years of tenure before promotion. He mentioned that the company hired three VP-level IT employees for the first time in 35 years in early 2020, reflecting the growing importance of technology. When asked about his retirement, Galanti said he has been saying "two years" for several years, adding that he enjoys his work and may eventually teach.