Costco's CEO Ron Vachris Views AI As a Supplement to Human Value

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As executives name AI as one of many reasons for mass layoffs, Costco’s CEO Ron Vachris views AI as a supplement to human value.

Last month Vachris spoke at the Economic Club of Chicago about how AI is—and isn’t—changing Costco’s workforce of 341,000. 

“AI has been extremely good for our company in an assistive nature,” Vachris said. “What we found is, it has worked very well, complementing our employees and the systems that we put in place in the pharmacy, in our gas stations, and in the accounting department that we have. And also in some of our IT. It was writing some code.”

Discover how Costco is using AI to empower its employees rather than replace them.

Today in Global Small Business: The Selfless MacKenzie Scott Does It Again With Her Philanthropy

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What's affecting me, my clients, my colleagues and other global small business owners:

• The selfless MacKenzie Scott does it again with her philanthropy.  Feeling inspired and want to donate to an impactful nonprofit before the year end?  Do it here (it's a nonprofit I founded in 2015).
• The columnist David Brooks sits down with Thomas L. Friedman to make sense of what the modern world’s cascading crises mean for the future.
• Quote of the week:  "Christmas is a season which almost all Christians observe in one way or another. Some keep it as a religious season. Some keep it as a holiday. But all over the world, wherever there are Christians, in one way or another Christmas is kept." – J. C. Ryle
• How does Costco keep nailing it?  It's one simple holiday staple.
• Melinda Gates says everyone should read this book.
• Key financial lessons from "It's a Wonderful Life."

Costco Rocks and For a Good Reason

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With all the recent news about tariffs, members can't help but wonder if they will see prices at Costco go up.

At the company's second-quarter earnings call in March, CEO Ron Vachris spoke to reassure investors and customers at the same time, even as he acknowledged that it's difficult to predict the impact of tariffs. 

"Our team remains agile and our goal will be to minimize the impact of related cost increases to our members," he said, adding that only around one-third of Costco products sold in the U.S. are imported from other countries, and less than half of those are items coming from China, Mexico, and Canada.

By the end of the year, Costco will have more than 900 locations worldwide.  Here is a list of the locations opening soon: 

• Stuart, FL, April 2025
• Ardeer, Australia, April 2025
• Minami Alps, Japan, April 2025
• Pyeongtaek, Korea, June 2025
• Malmo, Sweden, July 2025
• Midland, TX, July 2025

Today in Global Small Business: What the World Needs Now Is Love Sweet Love

©2023 Laurel J. Delaney.  All rights reserved.

What's affecting me, my clients, my colleagues and other global small business owners:

• What the world needs now is love sweet love:  Dionne Warwick, 1966 (music video).
• A courage to change the world, Claudine Gay, Harvard's 30th president.
• U.S. averts government shutdown.
• Quote of the week: “Let us always meet each other with smile, for the smile is the beginning of love." – Mother Teresa
• iPhone 15 Pro owners are complaining about overheating problems.
• Costco planning to expand in U.S. and overseas over next 10 years.