PriceCostco

PriceCostco is the combined company formed by the 1993 merger of Costco and Price Club in Costco. The episode describes it as close to a merger of equals, with Costco shareholders receiving 52% and Price Club shareholders receiving 48%, and says the combined business had about 200 stores and roughly $16 billion in revenue.

The merger matters because it united the original Price Club model with Costco’s faster scaling and helped prevent Sam’s Club from dominating the warehouse-club category.

Connections

• Costco, Price Club, Sol Price, Robert Price, Jim Sinegal, and Sam’s Club - merger participants and competitive context.
• Warehouse Club Model and Scale Economies Shared - operating model strengthened by the combination.