Price Club was the pioneer of the warehouse store, founded by Sol Price in San Diego, California. Price came up with the Price Club concept in 1975 after being forced out of FedMart, another retail chain he founded. He and a few friends put up $2.5 million in capital to open the first Price Club on July 12, 1976 at 4605 Morena Boulevard, San Diego, the former site of a manufacturing building once owned by Howard Hughes, now Costco warehouse 401.
Club membership was initially only available to business customers, but was later opened up to certain groups, such as employees of local businesses, nonprofits, or government. The company charged shoppers a $25 annual membership fee to purchase bulk products at discount prices in a no-frills warehouse setting. Price Club's high sales volume enabled Price to give his employees more benefits and higher wages than typical retailers. The company expanded throughout the U.S., Canada, and Mexico. In 1992, Price Club earned $134.1 million on $6.6 billion in revenue from 94 locations.
Price Club merged with rival Costco in 1993, becoming PriceCostco. In 1997, PriceCostco became Costco Wholesale Corporation and all remaining Price Club stores were rebranded as Costco.
Famous quotes containing the words price and/or club:
“For what were all these country patriots born?
To hunt, and vote, and raise the price of corn?”
—George Gordon Noel Byron (1788–1824)
“I think there ought to be a club in which preachers and journalists could come together and have the sentimentalism of the one matched with the cynicism of the other. That ought to bring them pretty close to the truth.”
—Reinhold Niebuhr (1892–1971)