W. Jelinek on consumer behavior
From Costco CEO Craig Jelinek: We're seeing more young people sign up for memberships · · CNBCTelevision
“We're seeing more younger people sign up, absolutely. What you don't see is their purchases. They're slightly going up as they become longer members, but initially, the purchasing power from the younger generation compared to the Boomers or X is a little bit different on what they're buying.”
On , W. Jelinek, Company Advisor & Director at Costco, spoke about consumer behavior 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.