Price Club
An early membership warehouse retailer founded by Sol Price that helped establish the modern warehouse-club format before merging with Costco.
Last updated August 22, 2026
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Overview
Price Club was an American membership warehouse retailer founded by Sol Price in the mid-1970s. It emerged after Price left FedMart, a discount retail chain he had previously founded, and applied his experience to a different operating model: a large, low-overhead warehouse that sold merchandise in volume to members at discounted prices. The first location opened in San Diego on July 12, 1976, in a former manufacturing building associated with Howard Hughes. The original business was designed primarily for small businesses. Price observed that local enterprises commonly bought from a limited number of large wholesalers or from smaller cash-and-carry suppliers. Price Club offered an alternative by combining wholesale-style purchasing with the scale and inventory breadth of a warehouse operation. Prospective members initially had to provide resale certificates or professional credentials, reflecting the chain’s business-oriented origins. Eligibility later broadened to include employees of local companies as well as members of nonprofit and government organizations. The company charged an annual membership fee and operated with a deliberately restrained retail environment. Goods were sold in bulk or in large packages, displays and service features were kept limited, and the resulting cost structure supported lower prices. High sales volume also enabled Price Club to provide comparatively strong wages and employee benefits for its period, an aspect of the operating model associated with Sol Price’s retail philosophy. Price Club expanded beyond its first San Diego warehouse to a network of 94 locations in the United States, Canada, and Mexico. Its Mexican presence was developed through a joint venture with Controladora Comercial Mexicana. The chain became one of the principal early examples of membership warehouse retailing and an important competitor to Costco, which was founded later and pursued a closely related model. In 1992, the final full year before its combination with Costco, Price Club reported revenue of $6.6 billion and profit of $134.1 million. These figures describe the company’s scale shortly before the merger and are reported in contemporary historical references rather than representing current financial information. Price Club merged with Costco in 1993. The combined business initially operated under the name PriceCostco, while Price Club and Costco stores continued to retain separate identities for a period. Members of either chain could shop at both networks. In 1994, Price Enterprises was spun off from the combined company; it later became associated with PriceSmart, a separate warehouse-club business serving markets in Central America, South America, and the Caribbean. By 1997, PriceCostco had become Costco Wholesale Corporation and the remaining Price Club locations had been rebranded as Costco warehouses. The original San Diego warehouse remains part of Costco’s network and is identified as location number 401.
History
Price Club was created by Sol Price after his departure from FedMart, the discount retail chain he had founded earlier. Price and several associates invested $2.5 million to establish the new company. The first warehouse opened in San Diego on July 12, 1976, in a former manufacturing building previously owned by Howard Hughes. The business was initially conceived as a large-scale version of the cash-and-carry wholesale model. Price had noticed that small businesses in San Diego generally purchased directly from a handful of major wholesalers or used smaller local cash-and-carry suppliers. Price Club sought to consolidate these advantages in a warehouse environment with high merchandise volume, limited operating frills, and membership-based access. At first, membership was restricted to business customers who could provide resale certificates or professional licenses. The eligibility rules subsequently expanded to employees of local businesses and to people affiliated with nonprofit and government organizations. Members paid an annual fee to buy merchandise at discounted prices. The assortment emphasized bulk quantities and included food, household goods, and other general merchandise. The warehouse format reduced conventional retail expenses and allowed the company to compete on price. Its volume-based economics also supported relatively higher employee wages and benefits than were typical in much of the retail sector at the time. Price Club expanded across the United States and into Canada. It also entered Mexico through a joint venture with Controladora Comercial Mexicana. The chain ultimately reached 94 locations across the three countries. Its growth helped demonstrate that a membership warehouse could serve not only commercial buyers but also a widening group of organizational and individual consumers. By 1992, Price Club reported $6.6 billion in revenue and $134.1 million in profit. The following year it merged with Costco, its principal warehouse-club competitor. The combined company became PriceCostco, although the original Price Club and Costco banners remained in use temporarily and their members were allowed to shop across both networks. In 1994, Price Enterprises was spun off; it later developed into PriceSmart, a separate warehouse-club operator focused on markets south of the United States. In 1997, PriceCostco became Costco Wholesale Corporation and all remaining Price Club stores were rebranded as Costco. The original San Diego location survives as a Costco warehouse, identified as store number 401.
- 1997
Price Club identity disappears from the warehouse network
[1]PriceCostco was renamed Costco Wholesale Corporation, and the remaining Price Club stores were rebranded as Costco.
- 1994
Price Enterprises is spun off
[1]Price Enterprises was separated from the combined company and later became associated with the PriceSmart warehouse-club business.
- 1993
Merger with Costco creates PriceCostco
[1]Price Club merged with Costco, initially preserving both retail identities while combining the businesses.
- 1992
Price Club reaches major pre-merger scale
[1]The company reported $6.6 billion in revenue and $134.1 million in profit and had expanded to 94 warehouses across the United States, Canada, and Mexico.
- 1976
First Price Club warehouse opens
[1]The first location opened in San Diego on July 12 in a former manufacturing building previously owned by Howard Hughes.
- 1975
Sol Price begins developing a new warehouse-retail business
[1]After leaving FedMart, Sol Price organized a new venture with associates and raised $2.5 million to establish what became Price Club.
Products and positioning
Low-cost, high-volume membership warehouse retailing for small businesses, organizations, and later individual consumers.
Food retail · 1976
Bulk groceries
Price Club’s warehouse assortment included food sold in large quantities or multipacks. Bulk grocery merchandising was central to the company’s value proposition because high-volume purchasing and limited store presentation helped reduce per-unit prices for business and household buyers.
Consumer staples · 1976
Household supplies
Household consumables and everyday supplies formed part of the general warehouse assortment. These products were presented in a utilitarian environment and commonly sold in larger packs suited to organizational, business, and family purchasing.
Warehouse retail · 1976
General merchandise
In addition to food and household goods, Price Club sold a broad range of general merchandise. The assortment supported the warehouse-club model by combining wholesale-style volume purchasing with a selection broad enough to attract both commercial members and later nonbusiness customers.
Retail service · 1976
Membership warehouse service
The defining offering was access to a membership warehouse. Customers paid an annual fee and purchased discounted merchandise in a no-frills setting. The service began with a business and resale orientation before expanding eligibility to additional organizations and individuals.
Brand decisions
1997
Complete conversion to the Costco brandStrategyBackground
PriceCostco had operated with both the Price Club and Costco identities after the 1993 merger.
Action taken
The company adopted the Costco Wholesale Corporation name and rebranded all remaining Price Club locations as Costco warehouses.
Aftermath
Price Club ceased to operate as a standalone retail brand, while its warehouse model and original San Diego location continued within Costco’s network.
1994
Spin off Price EnterprisesM&ABackground
Following the Price Club–Costco combination, Price Enterprises was separated from the combined structure.
Action taken
Price Enterprises was spun off and later developed the PriceSmart warehouse-club business in Central America, South America, and the Caribbean.
Aftermath
The transaction separated a business associated with the Price family’s later international warehouse-club activities from the Costco organization.
1993
Merge with CostcoM&ABackground
Price Club and Costco were competing membership warehouse chains with closely related operating models. Combining them created a larger warehouse-retail business.
Action taken
Price Club merged with Costco, and the combined company operated initially as PriceCostco while retaining both store banners for a transition period.
Aftermath
Members of both chains could shop at either network. The combined company later became Costco Wholesale Corporation, and the remaining Price Club locations were rebranded as Costco.
Recent events
- 1997
Remaining Price Club stores are rebranded as Costco[1]
M&A
PriceCostco adopted the name Costco Wholesale Corporation, and the remaining Price Club locations were converted to the Costco brand.
- 1994
Price Enterprises is spun off from the combined warehouse business[1]
M&A
Price Enterprises was separated from the PriceCostco structure and later became associated with PriceSmart, which developed warehouse clubs in Central America, South America, and the Caribbean.
- 1993
Price Club merges with Costco[1]
M&A
Price Club combined with rival Costco to create PriceCostco. The two store networks initially continued to operate under their own names, while members of either chain could use both.
- 1992
Price Club reports substantial scale before Costco combination[1]
Other
Price Club generated reported revenue of $6.6 billion and profit of $134.1 million, illustrating the size of the chain before its merger with Costco.
- 1976
Price Club opens its first warehouse in San Diego[1]
Other
The first Price Club warehouse opened on July 12, 1976, launching Sol Price’s membership warehouse concept from a former manufacturing site in San Diego.
Sources1 sources
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