Have you experienced the excitement of shopping at a Costco?
Do you the know the history and success of Costco?
The early stages and brief history:
a. Origin of FedMart with Sol Price in 1954.
b. Sol Price fired from FedMart, when Hugo Mann of Mann Mobilia in Germany obtained a 51% controlling interest of FedMart stock, in the early seventies.
c. Sol Price forms Price Club number one in San Diego in 1976 and brings along many of the former executives at FedMart, including James Sinegal (who would later become the CEO of Costco in the early 80’s.)
d. Costco opens the first store in Seattle, Washington, September 1983 with several of those executives that Sol Price had brought with him to open Price Club Number 1.
e. In 1993 Costco merged with Price Club to form PriceCostco. And in 1997, the company changed its name to Costco Wholesale and all Price Club locations were rebranded Costco.
f. Legendary “Merchant and CEO” Jim Sinegal accelerates the growth of Costco, to become the premier mass merchant retail corporation on the planet. under Jim’s leadership.
g. Craig Jelinek, who started with FedMart and joined Costco in 1984 becomes the new President and CEO in January 2012 for Costco Wholesale Corporation. (Craig has spent more than 25 years at the Issaquash, Washinton-based discount retailer and was mentored during his college years by Fed-Mart and Price Club founder Sol Price and the former CEO James Sinegal of Costco.
First and foremost at the core of Costco’s continued success is quite simple, hire the right people, give them good jobs and good wages is the key to good business. And second is a simple understanding of merchandising, called the “Six Rights”.
1. The Right Merchandise
2. At the Right Place
3. At the Right Time
4. In The Right Quantity
5. In The Right condition
6. At the Right price.
This merchandise philosophy is the backbone of the Costco that creates the excitement within the four walls of their huge stores, and as a direct consequence, creates the “treasure hunt atmosphere” for the members to keep returning to see what is new at Costco.
The best years are yet to come, with aggressive explosive growth within the United States, as well as Canada, Mexico, Europe and Asia. Those of you that have invested in Costco stock, have done well and will continue to do so. Costco now has over 622 stores, 448 in the United States, 85 in Canada, 32 in Mexico, 23 in United Kingdom, 13 in Japan, 8 in south Korea, 9 in Taiwan, and 3 in Australia.
And folks, where else can you get one of the best “hot dogs and a 20 ounce coke” for a $1.50? They operate on a small profit margin and pass the savings off to all their members, a tight lean, and efficient machine, high volume with very low prices are Costco Wholesale Warehouses.
For those of you that are not a member yet, I encourage you to join. They even give you 3% back on your sales every year if your an executive member!
Would very much like to read your thoughts and comments about one of the finest growing companies, on the Planet, bar none.
RayLanfear (Ray has spent over 40 years in retail management and has worked at many of the top retailing firms in America such as Thrifty Drug and Discount stores, KMart, Albertsons, Gemco, Home Depot, Lowes and of course Costco and FedMart. He also has been CEO of his own Internet business and a social media consultant. He resides in Las Vegas, Nevada. )