You’ve probably seen the headlines or heard the rumors at the food court while grabbing a $1.50 hot dog. There’s a new face at the top. Honestly, it’s a big deal because this company doesn’t change leaders very often. Since January 2024, Ron Vachris has been the CEO of Costco, taking the reins from the long-serving Craig Jelinek.
Vachris isn't some hotshot outside hire brought in to "disrupt" the culture.
He’s the opposite. He is the culture.
The Forklift to Corner Office Pipeline
If you want to understand who is the ceo of costco, you have to go back to 1982. Ronald Vachris was 17 years old. He wasn't looking to lead a global retail empire; he was just a kid in Arizona looking for a part-time job. He started as a forklift driver at Price Club, which eventually merged with Costco in 1993.
Think about that for a second.
Forty years. He spent four decades working nearly every job the company has to offer. He was an assistant warehouse manager in Phoenix. He managed the expansion into Colorado. He ran the Northwest region. He led the merchandising department. He even headed up real estate development. By the time the board tapped him for the top spot, he’d already seen the business from every possible angle—literally from the seat of a forklift to the executive suite in Issaquah.
This "promote from within" strategy is basically the Costco DNA. They don't want someone who has to learn how the warehouses work. They want someone who already knows why the pallets are stacked a certain way.
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What Most People Get Wrong About the Transition
A lot of folks expected huge, sweeping changes when Jelinek stepped down. People were worried. Would the hot dog price finally go up? Would the rotisserie chicken become a luxury item?
Actually, Vachris has been incredibly vocal about not changing the fundamental stuff. During a recent earnings call for the 2026 fiscal year, he reiterated that the membership card is the most important item they sell. Everything else is just a reason to keep that card in your wallet.
However, don't mistake "continuity" for "standing still."
Under Vachris, Costco is moving faster on technology than it ever did under the old guard. They’ve finally started leaning into a "digitally enabled" strategy. We’re talking about things like:
- Passwordless app sign-ins to stop the friction at the door.
- Prescan technology where employees scan your cart while you're still in line, speeding up checkouts by nearly 20%.
- Digital membership cards that actually work consistently.
He’s trying to drag a traditionally "analog" company into 2026 without breaking the magic that makes people pay $65 or $130 a year just for the privilege of spending more money.
Dealing With the 2024 Fee Increase
You probably felt the sting in late 2024 when membership fees jumped for the first time since 2017. Gold Star memberships went to $65, and Executive went to $130. As the new CEO of Costco, this was Vachris’s first big "villain" moment in the eyes of some shoppers.
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But here’s the kicker: it worked.
Despite the hike, renewal rates are still hovering around a staggering 92% in the U.S. and Canada. Vachris handled the blowback by dangling some pretty decent carrots. He boosted the maximum Executive 2% reward from $1,000 to $1,250 and introduced those exclusive early shopping hours for Executive members. It’s a classic move—ask for more money, but give a little more "VIP" treatment in return.
The 2026 Expansion Reality
If you're wondering when your town is finally getting a warehouse, Vachris has a plan for that, too.
Originally, the company wanted to open 35 new locations in fiscal 2026. Because of some construction hiccups over in Spain, that number got revised down to 28. Still, they are pouring roughly $6.5 billion into new warehouses, remodels, and their logistics network this year alone.
They’re even experimenting with "non-traditional" stores. Have you heard about the standalone Costco gas station in Mission Viejo? Or the massive 200,000-square-foot warehouse opening in Monterrey, Mexico? Vachris is clearly looking at the international market as the next big frontier while the U.S. market gets more crowded.
Why His Leadership Style Matters
There was a moment recently that really showed what kind of leader Vachris is. When workers at a Norfolk, Virginia, location voted to unionize, most CEOs would have gone on the defensive. They would have hired expensive consultants to fight it.
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Vachris and Jelinek did something weird. They sent a memo to every employee saying they were "disappointed in themselves."
They didn't blame the workers. They blamed management for failing to listen. That kind of humility is rare at the Fortune 500 level. It’s why you see people working at Costco for 20 or 30 years. They feel like the guy at the top actually remembers what it’s like to be on the floor.
What To Watch For Next
The next few months are going to be a test. Inflation is still a headache, and global supply chains are messy. Vachris is doubling down on the Kirkland Signature brand to keep prices low. He’s also pushing hard to get more "Gold Star" members to upgrade to "Executive" status, as those premium members now account for nearly 75% of total sales.
If you’re a member, expect more digital features in the app and maybe a few more "treasure hunt" items in the center aisles. If you're an investor, you're looking at a company that is finally embracing the 21st century without losing its soul.
Actionable Insights for Costco Members:
- Check the App for Prescan: If your local warehouse has the new prescan tech, use the "fast lanes" to save about 10 minutes on your weekend run.
- Evaluate Your Membership: If you're spending more than $250 a month at Costco, the $130 Executive tier pays for itself through the 2% reward, especially now that the cap is $1,250.
- Monitor the Food Court: Membership scanning at the food court is becoming mandatory in 2026 to keep non-members from crowding out the paying regulars. Keep your card handy.
- Watch for 2026 Openings: Keep an eye on the official "New Locations" page, as they are currently confirming spots in Texas, California, and Utah for the spring.
Ron Vachris might have started with a forklift, but he's currently driving one of the most successful retail engines on the planet. He’s keeping the hot dog cheap and the warehouses growing, which, at the end of the day, is exactly what most of us want from the person in charge.