Costco 2000 Annual Report Download - page 5

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Ñnancial and procedural controls that allow us to achieve the lowest inventory shrinkage
numbers of any major retailer in the world. All of this is in addition to an extraordinarily
solid and strong balance sheet.
These are all objective measures that can be tabulated. Just as important to the health of
Costco's business are the more subjective measures. The reputation for merchandising
excellence and quality that are a hallmark of Costco's operations; the recent American
Customer Satisfaction Index survey conducted by the University of Michigan Business
School this past November showing that Costco had the highest customer satisfaction
rating of any traditional national retailer in the U.S.; the merchandising, safety and
cleanliness standards which are the best in our industry; the quality of employees at every
level of our business, which is clearly the best in our industry; and Ñnally the quality and
long-term cohesiveness of our entire management team... from our buyers and warehouse
managers to our senior managers.
We understand that strong performance and consumer conÑdence in the past are not
annuities for future success. We consider Costco to be the architects of current warehouse
retailing, and we are Öattered that our competition is continually imitating our merchandis-
ing concepts and standards; but we fully recognize the requirement to improve, test new
methods and innovate in every aspect of Costco's business. We hope you will be able to
attend our Annual Meeting in January so we can explain more completely our latest
merchandising and operational initiatives.
In summary, we believe Costco made strong progress in many areas in Ñscal 2000 Ì
achieving record sales and earnings, strengthening our balance sheet and positioning our
Company for long-term growth and proÑtability and increased shareholder value. We
appreciate the dedicated eÅorts of our fellow employees Ì now numbering well over 80,000
worldwide Ì for their contributions to the success of Costco. And, as always, we want to
thank you, our loyal shareholders, for your continuing support. We look forward to seeing
many of you at our Annual Meeting of Shareholders on January 25th in Bellevue,
Washington. Best wishes for a happy and healthy Holiday Season and New Year.
Cordially,
JeÅ Brotman Jim Sinegal
Chairman of the Board President & CEO
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