Costco’s CFO Richard Galanti Steps Down After Four Decades

Costco Wholesale’s longstanding finance chief, Richard Galanti, is preparing to step down. Galanti, who assumed the role of Chief Financial Officer in 1985, has played a pivotal role in Costco’s success and has become a prominent figure for the discount membership retailer. His departure coincides with Costco’s deliberations over a potential increase in membership fees, a significant contributor to the company’s profits.

Galanti’s decision to step down paves the way for Gary Millerchip, former CFO of grocery chain Kroger, to assume the role of CFO at Costco, effective March 15. Galanti will continue to provide advisory support to Costco until January 2025.

Throughout his tenure, Galanti has been the primary liaison between Costco and Wall Street, often leading the company’s earnings calls with analysts. His influence and expertise have earned him recognition as the face of the company, leaving an indelible mark on both investors and industry insiders alike.

Despite challenges faced by other retailers, Costco has maintained robust sales figures, buoyed by strong consumer demand, particularly during the pandemic. Galanti’s strategic financial stewardship has been credited with steering the company through changing consumer behaviors and competitive landscapes.

The transition in leadership comes amid changes in the CEO ranks, with Ron Vachris ascending to the role of CEO following a tenure as a forklift operator. Costco’s upcoming earnings report on March 7 is eagerly awaited.

Millerchip is expected to address inquiries from analysts regarding the eagerly anticipated increase in membership fees, a significant revenue driver for Costco. Historically, Costco has adjusted its membership prices, which currently start at $60 annually, approximately every five years, with the last increase occurring in June 2017. While Costco’s CFO, Galanti, has acknowledged the prolonged interval since the last adjustment, he has affirmed that a fee increase is inevitable, although the timing remains uncertain.

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