(Reuters) -Costco Wholesale said on Wednesday CEO Craig Jelinek would step down from his role by the end of the year and be succeeded by operations head Ron Vachris.
Vachris, who has been with the firm for over 40 years, will take on the role from Jan. 1 as part of a "long-standing" succession plan, said the membership-only retailer.
He started off as a forklift driver at Costco (NASDAQ:COST) and has held several major roles at the retailer including overseeing merchandising, before becoming COO in 2022.
Jelinek, who became CEO in 2012, will remain at Costco through April 2024, serving in an advisory role, and will continue to serve on the board and stand for reelection at the January 2024 annual meeting.
He is stepping down from the top job after years of strong sales growth seen at the company, especially through the pandemic, as shoppers switched to more affordable options for daily essentials.
Last month, Costco surpassed market estimates for quarterly revenue and profit and saw a nearly 8% rise in total paid household members at the end of the fourth quarter.
Shares of the company were down marginally in after-hours trading on Wednesday.