Costco Wholesale Corporation
Company History
Costco History: Founding, Growth & Key Milestones
Founded 1983 in Kirkland, United States
When was Costco founded?
Costco was founded in 1983 in Kirkland, United States by James D. Sinegal and Jeffrey H. Brotman, making it 43 years old.
- Founded
- 1983
- Founding place
- Kirkland, United States
- Founders
- James D. Sinegal and Jeffrey H. Brotman
- Headquarters today
- Issaquah, Washington
- Milestones documented
- 12 (1983–2026)
- Current CEO
- Ron Vachris
- Acquisitions
- 3
| Year | Event |
|---|---|
| 1983 | First Costco Warehouse Opens in Seattle |
| 1985 | First Canadian Warehouse and Public Listing |
| 1993 | Price Club Merger Creates PriceCostco |
| 1995 | Kirkland Signature and Gasoline Become Growth Tools |
| 1997 | Executive Membership Is Introduced |
| 1998 | Costco.com Brings the Model Online |
| 1999 | Name Changes to Costco Wholesale Corporation |
| 2012 | Craig Jelinek Becomes CEO |
| 2020 | Innovel Acquisition Adds Last-Mile Capacity |
| 2024 | Ron Vachris Becomes CEO |
| 2025 | $275.2B Revenue and 914 Warehouses |
| 2026 | $303.2B Revenue and 939 Warehouses |
- Where was Costco founded?
- Costco was founded in Kirkland, United States in 1983. wikidata.org
- Who founded Costco?
- Costco was founded by James D. Sinegal and Jeffrey H. Brotman.
- When was Costco established?
- Costco was founded in 1983.
- How old is Costco?
- Costco is 43 years old as of 2026.
Founding Story
In 1976 retailer Sol Price opened Price Club in a converted airplane hangar in San Diego, selling goods off pallets to small businesses that paid an annual fee. Jim Sinegal had worked under Price for years at FedMart and Price Club. In 1983 he and Seattle attorney Jeffrey Brotman opened Costco in Seattle, using the same low-markup warehouse format but selling to households as well as businesses. Ten years later Costco and Price Club merged as PriceCostco, and the combined company eventually took the Costco Wholesale name.
Founders
James D. Sinegal
Costco Wholesale possesses a unique founding story, emerging from the hyper-competitive retail environment of the Pacific Northwest and built upon a foundational realization about consumer psychology. The company was founded in 1983 by James 'Jim' Sinegal and Jeffrey Brotman in Seattle, Washington. Jim Sinegal possessed foundational retail experience; he had spent decades working as an executive for Sol Price, the well-known retail pioneer who invented the entire 'warehouse club' concept with his Price Club stores in California in the 1970s. Jeffrey Brotman, a Seattle attorney from a prominent retail family, recognized the potential of the warehouse model and recruited Sinegal to help him build a competitor in the Pacific Northwest. Sinegal applied the effective, aggressive principles he learned from Sol Price but executed them with operational discipline. He believed that traditional retail was inefficient, burdened by expensive marketing, fancy store displays, and inventory bloat. Costco's foundational philosophy was severe simplicity: strip the warehouses down to bare concrete floors, eliminate all advertising, strictly limit the number of items sold (offering only 4,000 SKUs compared to 30,000 at a typical supermarket), and sell goods directly out of the shipping pallets they arrived on. By reducing operational costs, Sinegal could pass undeniable savings directly to the consumer. In 1993, recognizing their shared DNA and realizing that aggressive competition was destroying both their margins, Costco executed a strategic merger with Price Club. Under Sinegal's well-known, egalitarian leadership (famously capping his own salary and paying his workforce significantly above the retail industry average), Costco transformed a simple, bare-bones warehouse concept into a globally dominant retail religion. James D. Sinegal was born in 1936 in Pittsburgh. Education: San Diego State University; Central Catholic High School; San Diego City College.
Jeffrey H. Brotman
Jeffrey H. Brotman co-founded Costco in 1983 and served for decades as chairman and a guiding board presence. His contribution was not day-to-day merchandising in the Sinegal mold, but strategy: capital, governance, site discipline, and long-term expansion judgment. Brotman helped evaluate whether new warehouses could support the membership model without diluting returns, and he gave the young company credibility with investors, landlords, and business partners. He remained closely associated with Costco's ethical standards and conservative growth posture until his death in 2017. His lasting influence can be seen in Costco's careful real estate choices, board-level patience, and preference for strengthening the original model rather than chasing every retail fashion. Jeffrey H. Brotman was born in 1942 in Tacoma. Education: University of Washington School of Law.
Key Milestones
First Costco Warehouse Opens in Seattle
James Sinegal and Jeffrey Brotman opened the first Costco warehouse in Seattle in September 1983. The store gave the new company a direct test of the membership warehouse idea: fewer choices, bulk sizes, lower markups, and fast inventory movement. It mattered because the format asked shoppers to trade retail polish for measurable savings.
Source: en.wikipedia.orgFirst Canadian Warehouse and Public Listing
Costco opened its first Canadian warehouse in Burnaby, British Columbia, and offered public stock in December 1985. The year mattered because the young chain proved it could expand beyond its original U.S.
Source: en.wikipedia.orgPrice Club Merger Creates PriceCostco
Costco and Price Club merged in 1993, creating PriceCostco. Costco says the combined company had 206 locations and $16B in annual sales, which gave the warehouse-club model broader geographic reach and stronger supplier use.
Source: en.wikipedia.orgKirkland Signature and Gasoline Become Growth Tools
Kirkland Signature was introduced in 1995, the same year Costco opened its first gas station in Tucson, Arizona. Together, private label and fuel strengthened the member cost advantage by adding visible savings beyond ordinary grocery and general merchandise.
Source: en.wikipedia.orgExecutive Membership Is Introduced
Executive Membership launched in 1997, adding a higher-value tier for members who spend more. The tier later became central to renewal economics; in FY2025 Executive members represented 73.6% of worldwide net sales.
Source: en.wikipedia.orgCostco.com Brings the Model Online
Costco launched e-commerce at Costco.com in 1998. The move mattered because it gave members online access to selected products and services while keeping the digital business narrower than a marketplace model.
Source: en.wikipedia.orgName Changes to Costco Wholesale Corporation
After the PriceCostco and Costco Companies periods, the company adopted the Costco Wholesale Corporation name on August 30, 1999. The change gave the public company the corporate identity it still uses today.
Source: en.wikipedia.orgCraig Jelinek Becomes CEO
Craig Jelinek succeeded Jim Sinegal as Costco chief executive in January 2012.
Source: en.wikipedia.orgInnovel Acquisition Adds Last-Mile Capacity
Costco acquired Innovel Solutions in 2020 for $1B to strengthen delivery and installation for large and bulky items. The deal mattered because e-commerce growth in appliances, furniture, and similar categories depends on execution after checkout.
Source: en.wikipedia.orgRon Vachris Becomes CEO
Ron Vachris became President and Chief Executive Officer effective January 1, 2024, after serving as President and Chief Operating Officer. The transition mattered because Costco chose an internal operator to preserve the membership and warehouse discipline built over decades.
Source: en.wikipedia.org$275.2B Revenue and 914 Warehouses
Costco reported FY2025 revenue of $275.2B, net income of $8.1B and 914 warehouses at fiscal year-end, the first full year after the September 2024 membership fee increase.
Source: sec.gov$303.2B Revenue and 939 Warehouses
Costco reported FY2026 total revenue of $303.2B and net income of $9.23B, with 84.1M paid members and a 92.3% U.S. and Canada renewal rate. It also received its first IEEPA tariff refunds in Q4.
Source: finance.yahoo.comMajor Acquisitions
Price Club
1993The merger with Price Club was designed to consolidate two warehouse-club pioneers into a single stronger retailer. It removed a direct competitor, expanded Costco's store base, increased purchasing volume, and strengthened the company's California presence. The deal mattered because warehouse economics improve when volume improves supplier terms and lets low prices become more defensible.
Innovel Solutions
2020Costco acquired Innovel Solutions from Transform Holdco to strengthen delivery and installation capabilities for big and bulky products such as appliances, furniture, mattresses, and fitness equipment. The acquisition addressed a real gap in Costco's e-commerce model: members increasingly expected delivery convenience, but outsourcing every complex delivery weakened control over service quality.
Costco-Taiwan (President Costco Wholesale Corp. 45% minority stake)
2022Costco Wholesale Corporation purchased the remaining 45% minority interest in its joint venture President Costco Wholesale Corp. (Costco-Taiwan) for $1.05 billion cash, gaining 100% full ownership of its warehouse club operations in Taiwan.
Keep researching Costco
Costco Company History FAQ
What were the major historical milestones of Costco from 1983 to 1995?
Costco opened its first warehouse in Seattle in 1983, went public in 1985, opened its first Canadian warehouse in Burnaby, B.C. the same year, merged with Price Club in 1993 and introduced Kirkland Signature in 1995. Costco says it was the first company to grow from zero to $3 billion in sales in under six years.
When did Costco begin selling gasoline at its warehouse clubs?
Costco opened its first gas station in 1995 in Tucson, Arizona. Fuel is now one of its biggest traffic drivers; Costco estimates members saved more than $3.2 billion on gas in Q4 FY2026 alone compared with average pump prices.
When did Costco transition its exclusive credit card partnership to Visa and Citi?
In June 2016, Costco ended its 16-year exclusive partnership with American Express in the US and transitioned to Visa (Citi Costco Anywhere Visa Card), negotiating significantly lower interchange merchant fees and offering members 4% cash back on gas and 2% on Costco purchases.
What occurred during Costco's historic mainland China debut in 2019?
Costco opened its first mainland China warehouse in Shanghai's Minhang district in August 2019. Crowds were so large that it closed early on opening day. Costco had seven warehouses in China at the end of fiscal 2026.
How did Costco perform during the 2020 to 2022 global supply chain disruption?
During the pandemic and supply chain crunch, Costco chartered its own container ships to bypass congested ports, kept warehouses stocked with essential groceries, and saw sales surge past $220 billion as millions of consumers relied on the warehouse format.
When did Ron Vachris become Chief Executive Officer of Costco Wholesale?
On January 1, 2024, Ron Vachris officially assumed the role of President and CEO of Costco Wholesale Corporation, succeeding W. Craig Jelinek in a carefully orchestrated, multi-year executive succession plan.
What milestones did Costco achieve in its 2024 fiscal year?
In fiscal 2024, Costco surpassed $250 billion in consolidated revenue, paid a historic $6.7 billion special cash dividend ($15.00/share), surpassed 135 million cardholders worldwide, and raised annual membership fees for the first time in seven years.
What happened at Costco in fiscal 2026?
In FY2026 Costco grew net sales 10.1% to $297.2B, reported $9.23B in net income, opened 28 warehouses to reach 939, passed $33B in digitally enabled sales and received its first IEEPA tariff refunds. It plans 33 openings in FY2027.
When was Costco founded?
The first Costco warehouse was opened in 1983 in Seattle by James Sinegal and Jeffrey Brotman. However, its business model was entirely pioneered by Sol Price, who founded Price Club in 1976. The two massive companies merged in 1993 to create the modern Costco.
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