Report: Costco management changes hint of future succession plan
ISSAQUAH, Wash. Following the promotion of its EVP merchandising to the roles of president and COO, rumors are circulating that wholesaler Costco may be making a succession plan fpr its CEO position.
Craig Jelinek, a 6-year veteran of Costco, was promoted Monday. Analysts are inquiring whether or not Jelinek's appointment to president and COO are a way to dispel investors' concerns over the future of the wholesaler, according to published reports.
Although Costco spokesman Richard Galanti told the Wall Street Journal that the "the [executive] changes are part of a long process" and that the move may indicate of more changes to come, he said CEO Sinegal won't be retiring for several more years.
Costco currently operates 566 warehouses, including 413 in the United States and Puerto Rico and reported $16.92 billion in net sales for first quarter of fiscal 2010, an increase of 6% from the year-ago period.