How Costco Came Up With Its Iconic Name

Costco, or Costco Wholesale Corporation as it's wholly known, has built a long-tenured and successful reputation after opening in 1983. Much of that success comes from Costco enabling shoppers to buy items like frozen baked goods in bulk, and popular deli items like its inflation-proof rotisserie chicken, which is a step above the rest.

Certainly, the store has innovated how retailers do business and become so renowned that its popular Kirkland Signature brand can also be found at other stores — and there's a good reason behind this. Although there's no official verification, it's generally accepted that Costco's name originates as an amalgamation of 'Cost Company.' This is due to the brand's goal of helping customers save money and manage their spending.

As per its site, Costco's "operating philosophy has been simple. Keep costs down and pass the savings on to [its] members." While perusing their aisles, and wondering what those green price tags mean or perhaps how many guests they can bring with them, members may also have been curious about the full story of Costco's name. As it turns out, the answer to that historical question predates the company and may be simpler than one may think.

In truth, Costco's history begins with another company: Price Club. Founded by Sol Price, a retail revolutionary and philanthropist, Price Club opened in 1976 and introduced a brand new concept, warehouse shopping, to the masses. The store's concept allowed customers to purchase a limited selection of products at the lowest price possible, so long as they paid a yearly fee. This would inspire Jim Sinegal and Sam Walton, Sol Price's proteges, to embark on similar journeys.

Sinegal partnered with Jeff Brotman to open Costco in 1983, and Sam Walton would open Sam's Wholesale Club (which would be renamed Sam's Club) and later, Walmart. Both Walton and Sinegal ran their businesses with the same membership-warehouse mentality as Price Club, bringing them equal success. Eventually, both competitors presented Price Club with merger deals, and in 1993, Price Club merged with Costco to become PriceCostCo.

The new store brand would continue to be innovative and successful against its competition, which included Walton's brands. After four years, Sol Price left the company. This allowed Sinegal to sail into his own venture wherein PriceCostCo rebranded under his former Costco name and found further success.

Today, Costco, and its Kirkland Signature brand, stands as the third largest retailer globally, with over 130 million faithful members and counting (which even includes such famous shoppers as Julia Child). Just make sure that if you happen to be one of them, you don't get yours revoked.