Costco Wholesale’s deals on hot dogs, gas and thousands of bulk items may seem like the best the chain has to offer, but according to the company’s CEO, one item sold surpasses everything else in the big box in terms of value.
“The number one item we sell is the membership card,” Costco CEO Ron Vachris told Fortune during an interview last month. “Everything we do supports that transaction.”
Costco offers two types of memberships: Executive and Gold Star.
The Gold Star membership costs $60 per year and offers members the ability to shop online and in warehouses, includes two membership cards, and comes with a guarantee that allows members to cancel their membership for a refund if they are dissatisfied at any time.
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But the real savings come with the Executive Membership, which costs $120 per year.
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With an Executive Membership, members get all the benefits of a Gold Membership, plus additional benefits and discounts on Costco services.
Additionally, members receive a 2% annual reward of up to $1,000, which can be used on qualifying Costco and Costco travel purchases.
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For example, if a member spends $300 per month on household items such as groceries, clothing, and paper products; $1,000 per year on appliances and electronics; $300 in furniture and bedding; and $600 a year on cars, travel and lifestyle, they could get about $110 back from Costco, according to a calculator on the company’s website.
All members also receive daily deals, such as the wholesale club’s popular $1.50 hot dog and drink combo.
With so many products in stock, it can seem difficult to choose the item with the most value, although Vachris’ experience with the company makes him one of the best people to take on such a task.
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Vachris is the third CEO to hold the title of CEO at Costco in the company’s 41 years in business, after reportedly starting as a 17-year-old forklift driver for Price Club, which eventually merged with Costco.
According to the company’s website, Vachris is a Costco veteran who served in every major role related to Costco’s business and merchandising activities during his more than 40 years of service with the company. Before being tapped as CEO, he served as president and chief operating officer of Costco as of February 2022.
On January 1, 2024, he took over as CEO, replacing Craig Jelinek.
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Fox News Digital reached out to Costco for comment but did not immediately hear back.
Costco’s most recent annual report shows that membership grew to nearly 128 million last year, with a 90% renewal rate. Membership revenues increased 8% last year, bringing the total to $4.6 billion.
Source of original article: Costco’s CEO says one item is more important than anything else sold in the store
