Costco Front End Operations, Merchandising, and Supervisory Standards

Comprehensive vocabulary flashcards covering Costco's Mission Statement, Code of Ethics, Front End benchmarks, AS400 tracking options, Six Rights of Merchandising, and Job Code 1075 supervisory functions.

Costco Mission Statement

To continually provide our members with quality goods and services (or highest quality product & service) at the lowest possible prices.

Costco Code of Ethics

The four core ethical principles guiding business conduct: 1. Obey the law, 2. Take care of our members, 3. Take care of our employees, and 4. Respect our suppliers.

Costco Ultimate Goal

To reward our shareholders, which is achieved by upholding the four tenets of the Code of Ethics throughout the organization.

6 Rights of Merchandising

The fundamental merchandising principles consisting of: 1. Right Merch, 2. Right Place, 3. Right Time, 4. Right Quantity, 5. Right Condition, and 6. Right Price.

Gift Of Membership

A daily front end benchmark program designed to help improve company growth on memberships.

Every Day Upgrades

A daily front end benchmark consisting of having $1$ floater a day and achieving a minimum of $1$ upgrade per day.

Pre Scanners

Front end benchmark deploying $2$ employees—one on the high side and one on the low side—to improve Member Per Hour (MPH) and enhance member experience.

"RAF" (Refer A Friend)

A daily benchmark with a minimum requirement of $1$ per day that helps track down card sharing.

Tracking MPH (Member Per Hour)

A measurement of cashier speed checked every hour, with a performance standard requiring it to be at $52$ or higher.

Option LSDT (AS400)

An AS400 computer option used for hours adjustments, door counts, and sales plans for the day.

Option LSWT (AS400)

An AS400 computer option used to view last year's sales plans and percentage.

Option IAFEP (AS400)

An AS400 computer option used for daily MPH (Member Per Hour) tracking on registers.

Job #1 (Costco Member Service)

The standard designating member service as the top priority, requiring appropriate coverage, resolving member concerns, and maintaining a positive attitude during difficult circumstances.

Open Door Policy

A company culture practice under the Integrity essential function where managers remain approachable and encourage honest, direct dialogue with employees and peers.

Formal Performance Management Tools

Evaluation mechanisms used to provide specific, timely feedback and hold employees accountable, specifically including Performance Logs, Appraisals, and Appreciation Notices.

Position Summary (Job Code: 1075)

A supervisory role responsible for overseeing employees, coordinating breaks, determining required registers, upholding standards, promoting productivity, and performing register system controller duties.

Compliance & Safety (Essential Function)

The responsibility to identify noncompliance, ensure confidentiality of employee and member data, adhere to the IS security policy, and uphold the Employee Agreement.

Self-Management (Essential Function)

Displaying a calm, professional demeanor (body language, facial expressions, word choices) under provocation, having a sense of urgency, managing stress, and handling multiple tasks at once.