He was the "voice" of the company for 40 years. Honestly, if you’ve ever listened to a Costco earnings call, you know the vibe was just different. No corporate buzzwords. No dodging questions with PR-speak. Just Richard Galanti, a man who sounded more like a guy explaining the family budget at a kitchen table than the CFO of a multi-billion dollar global powerhouse.
Basically, Galanti wasn't your typical suit.
Richard A Galanti Costco: A Legacy Built on Bulk and $1.50
When Galanti stepped down as CFO in March 2024, it felt like the end of an era for retail nerds and bargain hunters alike. He’d been there since 1984. Think about that for a second. When he joined, Costco only had a handful of warehouses. By the time he transitioned into his advisory role—which wraps up in January 2025—the company had nearly 900 locations worldwide and a cult following that most brands would die for.
You’ve probably heard the legend of the hot dog. It’s the $1.50 combo that hasn't changed price since the mid-80s. Galanti was the gatekeeper of that price tag. He famously joked that he’d be "struck by lightning" if he ever raised it. While other retailers were busy "price-optimizing" (which is just a fancy word for making things more expensive), Galanti and the Costco team were obsessed with the opposite.
They wanted to see how low they could go.
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From Wall Street to Warehouse Floors
Galanti didn't start in a warehouse. He was actually an investment banker at Donaldson, Lufkin & Jenrette. In 1983, he helped a tiny startup called Costco raise its Series A funding. He must have seen something special because, a few months later, he packed his bags, left New York, and moved to Seattle to become the VP of Finance.
He was only 27 or 28 at the time. Imagine being that young and helping steer a company that would eventually change how the entire world shops.
His background was elite—Wharton for his undergrad and a Stanford MBA—but his philosophy was surprisingly blue-collar. He grew up bagging groceries in his dad's stores in Atlanta. That "boots on the ground" mentality stuck. It’s why he was so focused on things like employee retention and "extreme value" for members. He knew that if you treat people right, they’ll keep coming back.
What Most People Get Wrong About the Costco CFO
People often think the CFO’s job is just about the stock price. With Richard A Galanti, it was about the membership. He understood something fundamental: Costco isn't really a grocery store; it's a club.
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Most of the company's profit doesn't come from selling 30-packs of toilet paper. It comes from those annual fees. Galanti was the master of the "when, not if" response regarding fee hikes. He’d tease analysts for years, saying a price increase was coming eventually, but then he’d hold off because the company was doing "too well" and didn't want to squeeze its members during inflationary times.
It was a brilliant bit of psychology. By being transparent about not wanting to raise prices, he built an incredible amount of trust with the public.
- The Special Dividends: Under his watch, Costco became famous for dropping massive special dividends. We're talking $15-per-share checks just... because they had the cash.
- The Transparency: He did the earnings calls himself for decades. No scripts. He’d answer questions about everything from chicken prices to the thickness of the trash bags.
- The Succession: He didn't just vanish. He stayed on to mentor his successor, Gary Millerchip (formerly of Kroger), ensuring the "Costco Way" didn't get lost in translation.
Why His Departure Actually Matters
A lot of investors are nervous. Why? Because Galanti was a stabilizing force. When you have the same guy running the books for 40 years, you know exactly what to expect. He was a "beacon of light" (his words, kinda) for shareholders who wanted slow, steady, and incredibly reliable growth.
He saw the company through the 1987 crash, the 2008 mess, and a literal global pandemic. Through all of it, the strategy never really shifted. Sell high-quality stuff at the lowest possible margin and make sure the rotisserie chicken stays at five bucks.
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Actionable Takeaways from the Galanti Era
If you’re a business owner or even just a fan of the brand, there’s a lot to learn from how Richard A Galanti handled the Costco books. It wasn't about short-term wins. It was about the long game.
- Protect Your Loss Leaders: Whether it’s a $1.50 hot dog or a free consultation, find the one thing that brings people in the door and defend it at all costs. It builds a brand identity that money can't buy.
- Transparency Wins: Galanti’s "unfiltered" earnings calls made him a legend on Wall Street. If you’re honest about your challenges, people are much more likely to trust you when things are going well.
- Culture Over Everything: He frequently pointed out that Costco’s low "shrink" (theft) and high employee retention were financial wins. Treating workers well isn't just "nice"—it’s a line item that saves millions in the long run.
If you want to understand the future of the company, watch how Gary Millerchip handles the next few quarterly reports. The "Galanti Era" officially ends in January 2025, but the blueprint he left behind is likely to stick around for decades. Just don't expect the hot dog price to change anytime soon—Richard's ghost might just come back to haunt the boardroom if it does.
Next Step: You might want to look into Costco's latest 2024 Annual Report to see how Millerchip is starting to put his own stamp on the numbers, specifically regarding the recent membership fee increase.