Costco CEO Breaks Down How a Kirkland Product Gets Made | WSJ
In this Wall Street Journal interview, Costco CEO Ron Vachris, who rose from forklift driver to chief executive over 42 years with the company, discusses how Costco keeps employee turnover below 9% by offering careers rather than just jobs. The conversation also covers the outsized role of its Kirkland Signature private label, which drives sales, builds member loyalty, and pressures national brands on price. Vachris explains the company's 14% margin cap and how rewarding buyers for volume rat...
Key Takeaways
- Costco's CEO started as a forklift driver, proving the company promotes from within and rewards loyalty.
- Costco keeps turnover near 8.5% by offering careers, not just jobs, with everyone able to climb the ranks.
- Kirkland's quality forces national brands to lower prices, creating a halo effect across entire categories.
- Buyers are rewarded for volume, not margin, so Kirkland products stay capped at roughly 14-15% markup.
- Every Kirkland product gets a final sign-off from the CEO, who admits he occasionally says no.
Who is mentioned in this episode?
1 person comes up, including Ron Vachris.
- Ron Vachris (Person)
Mentioned in this episode
- The Wall Street Journal (Company)
- Kirkland (Product)
- Issaquah, Washington (Location)
- Sam's Club (Company)
- Scottsdale, Arizona (Location)
- Target (Company)
- Kirkland Golf Balls (Product)
- Kirkland Bacon, Egg, and Cheese Breakfast Sandwich (Product)
- Kirkland Razors (Product)
- Kirkland Sushi (Product)
- Costco (Company)
- Wal-Mart (Company)