Price Club opened the first modern cash-and-carry warehouse club in San Diego in 1976.
Sol Price founded the business after developing the membership-warehouse concept associated with FedMart. Price Club kept operating costs low by using warehouse buildings, limited staffing, bulk packaging and membership-based access. Customers paid at the time of purchase and transported their own goods, which helped support lower prices.
Costco was founded later, in 1983, by James Sinegal and Jeffrey Brotman. Price Club and Costco merged in 1993, initially creating a combined company known as PriceCostco before the Costco name became dominant. This history explains why people sometimes credit Costco with the original warehouse-club launch.
Sam’s Club and BJ’s Wholesale Club entered the market later. The specific first modern warehouse club is therefore Price Club, whose original San Diego opening established the format that those rivals expanded.