Founded by James (Jim) Sinegal and Jeffrey H. Brotman,[11] Costco opened its first warehouse in Seattle, Washington, on September 15, 1983.[12] Sinegal had started in wholesale distribution by working for Sol Price at both FedMart and Price Club. Brotman, an attorney from an old Seattle retailing family, had also been involved in retail distribution from an early age.[citation needed]
In 1993, Costco and Price Club merged operations after Sol Price, who founded the competing chain in 1976 with his son Robert, declined an offer from Sam Walton to merge Price Club with his Sam's Club chain.[13] Costco's business model and size were similar to those of Price Club, which made the merger make more sense for both firms.[9] The combined company took the name PriceCostco and boasted 206 locations generating $16 billion in annual sales.[14] PriceCostco was initially led by executives from both companies, but then Sol and Robert Price left the company in 1994 to found Price Enterprises.[9][15]