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. Costco's business model and size were similar to those of Price Club, which made the merger make more sense for both firms. The combined company took the name Price Costco and boasted 206 locations generating $16 billion in annual sales.
Price Costco was initially led by executives from both companies, but then Sol and Robert Price left the company in 1994 to found Price Enterprises.
The first Price Club location was opened in 1976 in an old airplane hangar, previously owned by Howard Hughes, and is still in operation today (Warehouse No. 401, located on Morena Boulevard in San Diego).
In 1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded as Costco.