Costco 2008 Annual Report Download - page 7

outdistance the competition despite the challenging economy and lackluster retail environment. Rather
than a time to pull back, we see this as an opportunity to increase our market share and build our
supplier relationships, in some instances with new suppliers. We strongly believe in our partnership
with our suppliers. We are tough but fair negotiators; and believe both parties can profit. Each year we
add many new suppliers to our team, and we are particularly pleased to have initiated relationships
with Godiva Chocolates, Martha Stewart (food products), Kenneth Cole (handbags), Herman Miller
(office), Andrew Marc, O’Neill and Marc Ecko (apparel), and Waterford (crystal), among many others,
in 2008.
Costco has always sought to be a good steward of the environment, and we continue to pursue new
initiatives and implement new policies that enhance our performance in this important arena. The
Company has created a “Greening of Costco” task force which is at the forefront of this endeavor. We
have an extensive recycling program that includes the efficient and environmentally protective
recycling of cardboard and paper, photo lab silver, junk tires and broken pallets. We are actively
pursuing energy conservation, with skylights in all warehouses. Solar panels have now been installed
in 17 of our locations. We are developing recyclable merchandise packaging and have also redesigned
packaging where possible to enable us to place more product on a pallet, effectively reducing the
number of delivery trucks on the road. The Company also is pursuing sustainable growth and seeks to
work with free trade suppliers.
Costco is a great place to work and a great place to shop; and our focus will be to continue to grow
long-term shareholder value. Our strong balance sheet, operating efficiencies, and creative approach
to merchandising should see us safely through the current downturn in the economy and enable us to
not only survive, but grow during these challenging times. We intend to carry out our current expansion
plans and grow our market share, becoming an even stronger, more successful Company, increasing
our sales, our profits and the satisfaction of our many Costco members.
As founders of Costco we have always considered our greatest contribution to be the growth of our
management team – one strong enough to run the large and complex business that Costco has
become. We have 142,000 fantastic, well-compensated employees worldwide who enjoy working at
Costco and view their jobs as careers with advancement opportunities; we are talented merchants with
high quality goods to sell; and perhaps most important, we have created an environment where more
than 57 million loyal Costco cardholders have come to value Costco as their primary shopping
destination.
Make no mistake, 2009 will be a challenging time for all people and businesses around the world. We
consider Costco to be in a unique position as a result of our favorable business reputation and the
extraordinary value concept we represent.
Costco’s management team and all of our employees around the world thank you for your confidence
and for your part in our successful quarter-century. We thank you for your continued trust and support
and look forward to seeing many of you at our upcoming Annual Meeting of Shareholders on
January 28, 2009, in Bellevue Washington.
May you have a blessed holiday season and a peaceful and prosperous new year.
Warm Regards,
Jeff Brotman Jim Sinegal
Chairman of the Board President & CEO
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