Costco 2009 Annual Report Download - page 7

creative merchandising, are the fundamentals of Costco’s success. Our unique business model and
dedication to the ethical treatment of all of our stakeholders – from shareholders to members to
suppliers to employees – is an extension of our operating philosophy. That focus carries over into the
communities where we operate and to the world at large. Costco and its employees are very involved
in volunteerism and philanthropy at the local level. We also are working to expand our relationships
with free trade suppliers and those who practice sustainable growth.
Since our inception we have always made conservation and sustainability an emphasis at Costco.
Helped by our Corporate Sustainability and Energy Group, we seek to innovate in our pursuit of earth-
friendly practices and technology, and we are proud of what we have accomplished – such as skylights
in all our warehouses, solar panels on 37 buildings, and an extensive recycling program. Whenever
possible, we are developing recyclable packaging and redesigning packaging so that more items fit on
a pallet in order to reduce the number of delivery trucks on our roads. Nevertheless, we realize there is
still more to be done as we seek to reduce our carbon footprint while meeting our business needs. To
learn more about our efforts, please log on to Costco.com and review our Corporate Sustainability
Report, published in January 2009.
We know we face challenges. Today’s financial environment means that we must work harder than
ever before to make a dollar. We must concentrate on cost containment at every level, as well as
continually focus our energy on driving sales. Attention to detail is critical in every aspect and segment
of our business, ensuring that we deliver on every promise we make to our members and other
stakeholders. We believe we have the best and most cohesive management team in the business to
help us achieve our goals – men and women who have been with us since the beginning, many of
whom have worked together in retail for more than forty years – as well as the best employees in the
industry. We are all committed to excellence every day.
We expect the economy will continue to be turbulent throughout 2010. While Costco, like all
businesses, will be confronted with difficulties in the coming year, we are confident that the Company
will grow despite the lackluster retail climate. We will continue our focus on growing long-term
shareholder value by adhering to the policies and practices that made Costco great. We are confident
in our entrepreneurial and innovative spirit at every level of our Company.
Our management team and our 147,000 fellow employees worldwide join us in thanking you for your
trust and support and for the important role you play in Costco’s success. We look forward to seeing
many of you at our upcoming Annual Meeting of Shareholders on January 28, 2010, in Bellevue,
Washington.
As always, we extend our best wishes for a joyous holiday season and a prosperous and successful
New Year.
Warm Regards,
Jeff Brotman
Chairman of the Board
Jim Sinegal
President & CEO
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