By 1993, Sam's Club was the leading warehouse wholesaler in terms of profit, making about $12 billion annually and owning over 300 locations. The second-biggest profit maker was Price Club, bringing in $7.5 billion annually across 94 stores. Costco was No. 3, making $6.5 billion and owning 103 stores. Price Club realized the market was getting too competitive and made the decision to merge with one of the other two wholesaler giants. Both Costco and Sam's Club wanted to merge with Price Club, but ultimately, the company chose Costco.
Price Club owners allegedly felt that Sam's Club brand was too different from their own, but it's hard not to speculate whether the decision had something to do with Jim Sinegal — one of the two Costco founders who held a high position at Price Club before branching out on his own. The merger created a $14 billion company that became a true force to be reckoned with. Originally called PriceCostco, the chain was eventually renamed to just Costco in 1997.
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