History

Founded by James Sinegal and Jeffrey Brotman, Costco opened its first warehouse in Seattle, Washington on September 15, 1983. Sinegal began by working for Sol Price at both Fedmart and Price Club. Brotman, an attorney from an old Seattle retailing family, was also involved in retailing from an early age.

Costco’s business model was similar to that of Price Club, which was founded by Sol Price in 1976 in San Diego, California. Both companies carried a much smaller number of products than the average retailer, charged a membership fee and catered primarily to small-business owners.

The two retailers were similar in size when they merged in 1993, effectively doubling the size of the combined company. Originally led by executives from both companies, Sol and his son Robert Price founded Price Enterprises and left PriceCostco in 1994. The company’s name was changed to Costco Wholesale in 1997.

Criticism

Costco tore down the Casino de la Selva in Cuernavaca, Mexico, to build a store there and has faced opposition from TIAA-CREF shareholders as well as its own shareholders. Costco has issued a document  clearly leveled at the charges of mural damage and unnecessary tree removal. In it they describe the restoration and relocation of the murals from the old casino to a new cultural center they have constructed.

Costco also has been accused of supporting Canadian sealing by selling seal oil capsules in its Canadian stores. Sea Shepherd called for an international boycott ; however, on March 31, 2006 Costco announced it was removing seal oil capsules from its shelves but retracted its decision seven days later.