Costco was founded in 1983 by James Sinegal and Jeffrey Brotman.
The first Costco warehouse opened in Seattle, Washington, on September 15, 1983. Sinegal had experience working with Sol Price, a pioneer of warehouse-club retail, while Brotman came from a Seattle retailing family. Their company focused on membership-based bulk selling, limited product selection and low operating costs.
Costco merged with Price Club in 1993. Price Club had been founded in San Diego in 1976, and its history is distinct from Costco’s original Seattle launch. The merger created a larger warehouse-club business and eventually led to the Costco name being used widely.
Costco warehouses sell groceries, electronics, appliances, clothing and services. Membership is central to the model: customers pay for access to discounted merchandise, while the company also earns revenue from annual membership fees.