Costco 2007 Annual Report Download - page 7

that we are never satisfied with our expense results, and always feel we can and should do better. You
have our promise we will stay on task to improve in this area.
Overall, we are extremely proud of Costco’s accomplishments in fiscal 2007. We are now the fourth-
largest retailer in the U.S. and the eighth largest in the world; and more important, we are the
undisputed sales leader and pricing authority in our industry, with the most innovative, consistent and
cohesive management team.
Many of our executives have been with us for more than 20 years, and some have spent as many as
40 years working together in the retail industry. We have many more talented, highly-qualified
managers who are being groomed to step into key leadership roles as needed, and hundreds more are
being aggressively trained for advancement. We have always been successful in giving all of our
employees equal opportunities to advance and in developing our leaders and promoting from within. In
fact, 68% of our current warehouse managers started with our Company as hourly employees.
As Costco’s founders, we are proud to have assembled such an outstanding management team, and
we have every confidence that our future leaders are now stocking shelves and pushing carts in our
warehouses as they learn the business from the ground up, mentored by some of the best in the
business. We extend our thanks to each and every one of Costco’s 136,000 employees for their hard
work and dedication to our Company, and we look forward to what we will accomplish together in the
years ahead.
Our current thinking is that Costco has tremendous additional growth opportunities going forward and,
if we continue to perform well, we might be able to double the size of our Company over the next
decade. Of course, there are no guarantees, as long-term success will require many factors, including
a sound economy; ongoing merchandising innovation; a disciplined approach to controlling expenses;
developing the people necessary to successfully carry out such expansion; and a passion to make
Costco the very best it can be. We believe that this is not only possible, but also represents the “core
motivation” and passion of every Costco employee.
Lastly, we continually receive comments on the amount of “publicity” Costco receives … whether it’s a
recent write-up in the Sunday New York Times; or a local news reporter commenting on Costco’s
pharmacy or gas prices being the lowest in town; or a late-night television host poking good-natured
fun at Costco; or celebrities sharing how much they love shopping at Costco. Yes, we enjoy the many
positive reports and accolades we receive. More importantly, we recognize the positive value it brings
to our Company, particularly given that none of these items are solicited by us. Costco has no public
relations department!
On behalf of Costco’s management team and employees around the globe, we thank you for your
ongoing trust and support. We value your partnership and hope to see many of you at our upcoming
Annual Meeting of Shareholders on January 29, 2008, in Bellevue, Washington.
Best wishes for a joyful holiday season and a new year filled with exciting opportunities.
Warm Regards,
Jeff Brotman Jim Sinegal
Chairman of the Board President & CEO
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