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Costco elevates Ron Vachris to president, COO

Promotion could be sign of succession plan for CEO Craig Jelinek, industry observers say

Russell Redman

February 7, 2022

2 Min Read
Costco-Austin-Arbor Trails Shops-from InvenTrust.jpg
Vachris picked up the president's title from Costco Wholesale CEO Craig Jelinek.InvenTrust

Costco Wholesale has quietly promoted chief operating officer Ron Vachris to president.

Issaquah, Wash.-based Costco reported the appointment last week in an 8-K filing with the Securities and Exchange Commission. Vachris, formerly executive vice president and COO for merchandising, picks up the president’s title from Costco CEO Craig Jelinek.

In moving up to president, the 56-year-old Vachris also joins Costco’s board of directors. His election as a director fills “a newly created vacancy on the board,” according to Costco.

Ron Vachris-Costco-from YJP New York.pngRon Vachris, president and CEO of Costco Wholesale (photo courtesy of YJP New York)

“Craig Jelinek, who had previously served as president, will continue to serve as chief executive officer and a member of our board of directors,” Costco stated in the 8-K filing.

Vachris had served executive vice president and COO for merchandising since mid-2016. Prior to that, he was senior vice president of real estate from August 2015 to June 2016 and senior vice president and general manager of the Northwest region from January 2010 to July 2015. He joined the Costco organization through its integration with The Price Club in the wake of the companies’ 1993 merger. He began his retail career in 1982 with The Price Company.

The elevation of Vachris to president could signal a CEO succession by Costco, according to published reports and industry analysts.

Related:Costco keeps up sales pace in January

“This is not an official announcement of a CEO succession plan, but it implies a plan is taking shape,” Morgan Stanley analyst Simeon Gutman wrote in a research note yesterday. "It almost certainly paves the way for Mr. Vachris to succeed current CEO Craig Jelinek. If Vachris is appointed CEO, he would be the third CEO in Costco's history."

Jelinek has been CEO of Costco since the start of 2012, when he succeeded co-founder Jim Sinegal. Costco had appointed Jelinek as president and COO in February 2010, with Sinegal giving up the president’s title but continuing as CEO.

"Vachris has been Costco's chief operating officer of merchandising since 2016. His appointment would continue the lineage of merchant-to-CEO moves (Jelinek was COO of merchandising before becoming CEO)," Gutman said in his report. "Vachris is a Price Club veteran, and Price Club was known for its rich history of merchandising and talented merchants, which we think positively impacted Costco after the companies' merger. In our view, Costco has a stellar management team and bench, so we'd expect any transition to be smooth and seamless."

The SEC filing on Vachris’ promotion came last week as Costco reported strong January sales. Net sales for the month rose 15.5% while total comparable-club sales climbed 14.2%, including 14.1% in the United States.

Related:Strong December sales give Costco early Q2 boost

Overall, the warehouse club chain operates 828 stores, including 572 clubs in the U.S. and Puerto Rico.

*EDITOR'S NOTE: Article update with additional analyst comment.

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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