Costco Wholesale has introduced Gary Millerchip as its new Chief Financial Officer, following Richard Galanti's recent departure. In his first earnings call, Millerchip, with three months in the role, signaled both continuity and change as his top priorities for the corporation. Traditions like the $1.50 hot dog combo and monthly sales reports will remain, but new strategic shifts are emerging. Notably, CEO Ron Vachris joined the call, marking a shift towards more collaborative communication. Millerchip intends to use his prior leadership experience at Kroger, to lead Costco's digital development, which witnessed over 20% increase in the quarter ending May 12, 2024, especially in online purchases of high-demand products.
Costco, known for its no-frills warehouse model, is piloting programs to boost its digital presence, such as online purchases with warehouse pickups and expanded delivery options through Uber. Despite digital sales making up less than 10% of Costco’s total $57 billion revenue for the latest quarter, there is significant growth potential. Millerchip emphasizes measured shifts, aiming to expand product offerings and utilize data for targeted advertising to boost revenue. Analysts applaud these changes, pointing out that Costco's net income increased to $1.68 billion and its overall revenue, including membership fees, increased by 9% to $58.5 billion.
