Costco CFO Richard Galanti Steps Down

by Warren Seah

Costco Wholesale announced on Tuesday that its longtime Chief Financial Officer (CFO), Richard Galanti, will be stepping down in March. Galanti has served as CFO for over 30 years and will be replaced by Gary Millerchip, who previously held the position of finance chief at supermarket chain Kroger.

While Galanti’s official departure date is set for March 15, he will continue to serve in an advisory role at Costco through January 2025.

Millerchip’s unexpected departure from Kroger, which was announced on Monday, has raised eyebrows in the market. According to Oppenheimer analyst Rupesh Parikh, Millerchip’s strong financial performance during his tenure at Kroger has earned him the respect of investors. His departure will undoubtedly be felt by the company, especially as it attempts to finalize its merger with Albertsons.

Interestingly, Costco has a tradition of promoting from within, making Millerchip’s hiring a departure from their usual succession-planning strategy. For example, current Costco CEO Ron Vachris started as a forklift driver over 40 years ago before assuming his current role this January.

Analysts suggest that given the recent CEO succession and Galanti’s long-standing tenure at the company, the market had likely anticipated a transition in the CFO role. As of now, Costco stock remains relatively stable, with a 7.7% gain year-to-date, outperforming the broader S&P 500 index.

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