<p>Earlier this month, Costco Wholesale Corporation reported that the company’s net sales for the 52-week fiscal year 2013 was a record-setting <B>$102.87 billion</b>. And as Costco’s sales and stock price continue to surge, Craig Jelinek, CEO of Costco, believes that the company’s overall success is thanks to its happier work environment and company-sponsored health insurance.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> “I just think people need to make a living wage with health benefits,” said Jelinek. “It also puts more money back into the economy and creates a healthier country. It’s really that simple.”<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> And it’s not just the employees that are happy apparently. What’s more is that 80% of Costco’s gross profit comes from membership fees, according to Bloomberg Businessweek. Customers renew their memberships at a rate of close to 90%, the company says. Though the company’s profit comes mostly from membership fees, their ability to get bulk discounts from suppliers means they can set the industry’s lowest price, which means more sales at cut-rate prices.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Costco cultivates employees who work the floor in its warehouse and sponsors them through graduate school. Bloomberg Businessweek reports that 70% of its warehouse managers started at the company by pushing carts and ringing cash registers. Employees rarely leave: The company turnover rate is 5% among employees who have been there over a year, and less than 1% among the executive ranks. Although this means that there isn’t a regular influx of new employees, Jelinek is content to focus on the future of Costco, vowing to keep prices low, volumes high, and his employees happy. “As long as you continue to take care of the customer, take care of employees, and keep your expenses in line, good things are going to happen to you,” he said.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Many factors seem to be in play in terms of Costco’s success in the market, but if they keep this up, will they eventually become the number one North American wholesaler?<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow for more comments and opinions.</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://www.businessweek.com/articles/2013-06-06/costco-ceo-craig-jelinek-leads-the-cheapest-happiest-company-in-the-world#p5" target="_new"> Bloomberg Businessweek </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">
