Sol Price
Encyclopedia
Sol Price was the founder of FedMart
and Price Club
(since merged into Costco
). He is considered a pioneer of the "warehouse store
" retail
model.
Born in New York City, Price was the son of Samuel and Bella Price, immigrants to the
United States from Minsk (Russia), in the early years of the 20th century. The name Price, which later became so apt, was assigned at Ellis Island
; the original name may have been Press
or
Preuss. The family relocated to San Diego in the early 1920s.
Price was a 1934 graduate of San Diego State University
, and in 1938 earned a law degree from the University of Southern California Law School
, by which time he had married his girlfriend Helen Moskowitz, the couple eloping to Las Vegas. Price was admitted to the California Bar in November 1938.
Price launched the first FedMart
in 1954 and founded Price Club
in 1976. The company went public in 1980. In 1993 Costco
merged with (bought) Price Club to form PriceCostco. Leadership in the new organization was shared between Sol Price's son, Robert, and James Sinegal
. After eight months, PriceCostco spun off a separate company called Price Enterprises
, led by the younger Price. The company eventually evolved into PriceSmart
, which operates warehouse clubs overseas, while the domestic operations became Costco.
Sam Walton
of Wal-Mart
wrote in his book Made in America that he "borrowed" "as many ideas from Sol Price as from anybody else in the business". He added that he especially liked the idea of calling his discount chain "Wal-Mart" because he "really liked Sol's FedMart name". In 1983, Walton dined with Price and later that year the first Sam's Club
was opened in Oklahoma City
, Oklahoma
.
In the late 1980s, Price donated $2 million to the construction of a new student center on the campus of University of California, San Diego. Named for Price, the Price Center, which houses the main student bookstore, food court, movie theater, ballrooms, and meeting rooms, opened on April 21, 1989.
In 2011, the Price Family Charitable Fund donated $50 million to the University of Southern California's School of Policy, Planning, and Development
. The school was renamed the Sol Price School of Public Policy as a result of the donation.
Price is responsible for injecting money and aiding the renaissance being experienced in the San Diego mid-city neighborhood City Heights, where he resided in the 1930s. He was a member of the Board of Trustees for the Urban Institute in Washington, D.C., the Board of Directors for the Center on Budget and Policy Priorities, the Consumer Affairs Advisory Committee of the U.S. Securities and Exchange Commission, and the San Diego Financial Review Panel.
FedMart
FedMart was a chain of discount department stores started by Sol Price, who later founded Price Club. His first location in San Diego, California was in a converted airport hangar. It was originally a discount department store open to government employees, who paid a membership fee of $2 per...
and Price Club
Price Club
Price Club was the pioneer of the warehouse store. Founded by Sol Price in San Diego, California in 1976, the company charged shoppers a $25 annual membership fee to purchase bulk products at discount prices in a no-frills warehouse setting. Price Club's high sales volume enabled Price to give his...
(since merged into Costco
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
). He is considered a pioneer of the "warehouse store
Warehouse store
A warehouse store, as opposed to a warehouse club, is a retail location with a limited variety of merchandise sold in bulk at a discount to customers...
" retail
Retail
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
model.
Born in New York City, Price was the son of Samuel and Bella Price, immigrants to the
United States from Minsk (Russia), in the early years of the 20th century. The name Price, which later became so apt, was assigned at Ellis Island
Ellis Island
Ellis Island in New York Harbor was the gateway for millions of immigrants to the United States. It was the nation's busiest immigrant inspection station from 1892 until 1954. The island was greatly expanded with landfill between 1892 and 1934. Before that, the much smaller original island was the...
; the original name may have been Press
Press (surname)
Press is a surname with two unrelated origins. In England and Wales, it derives from Priest or Price. In Eastern Europe , it is a Jewish name, likely derived from the Sephardic surname Peres .-People:...
or
Preuss. The family relocated to San Diego in the early 1920s.
Price was a 1934 graduate of San Diego State University
San Diego State University
San Diego State University , founded in 1897 as San Diego Normal School, is the largest and oldest higher education facility in the greater San Diego area , and is part of the California State University system...
, and in 1938 earned a law degree from the University of Southern California Law School
University of Southern California Law School
The University of Southern California Law School , located in Los Angeles, California, is a law school within the University of Southern California...
, by which time he had married his girlfriend Helen Moskowitz, the couple eloping to Las Vegas. Price was admitted to the California Bar in November 1938.
Price launched the first FedMart
FedMart
FedMart was a chain of discount department stores started by Sol Price, who later founded Price Club. His first location in San Diego, California was in a converted airport hangar. It was originally a discount department store open to government employees, who paid a membership fee of $2 per...
in 1954 and founded Price Club
Price Club
Price Club was the pioneer of the warehouse store. Founded by Sol Price in San Diego, California in 1976, the company charged shoppers a $25 annual membership fee to purchase bulk products at discount prices in a no-frills warehouse setting. Price Club's high sales volume enabled Price to give his...
in 1976. The company went public in 1980. In 1993 Costco
Costco
Costco Wholesale Corporation is the largest membership warehouse club chain in the United States. it is the third largest retailer in the United States, where it originated, and the ninth largest in the world...
merged with (bought) Price Club to form PriceCostco. Leadership in the new organization was shared between Sol Price's son, Robert, and James Sinegal
James Sinegal
James D. Sinegal is co-founder and CEO of Costco, an international low-price membership retail chain and the largest U.S. wholesale club, headquartered in Issaquah, Washington, U.S.....
. After eight months, PriceCostco spun off a separate company called Price Enterprises
PriceSmart
PriceSmart Inc. is the largest operator of membership warehouse clubs in Central America and the Caribbean, with over 770,000 membership accounts and 1 million cardholders. PriceSmart is headquartered in San Diego, California, and it owns and operates 28 warehouse clubs in 11 countries and one...
, led by the younger Price. The company eventually evolved into PriceSmart
PriceSmart
PriceSmart Inc. is the largest operator of membership warehouse clubs in Central America and the Caribbean, with over 770,000 membership accounts and 1 million cardholders. PriceSmart is headquartered in San Diego, California, and it owns and operates 28 warehouse clubs in 11 countries and one...
, which operates warehouse clubs overseas, while the domestic operations became Costco.
Sam Walton
Sam Walton
Samuel Moore "Sam" Wallballs was a businessman, entrepreneur, and Eagle Scout born in Kingfisher, Oklahoma best known for founding the retailers Wal-Mart and Sam's Club.-Early life:...
of Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
wrote in his book Made in America that he "borrowed" "as many ideas from Sol Price as from anybody else in the business". He added that he especially liked the idea of calling his discount chain "Wal-Mart" because he "really liked Sol's FedMart name". In 1983, Walton dined with Price and later that year the first Sam's Club
Sam's Club
Sam's Club is a chain of membership-only retail warehouse clubs owned and operated by Wal-Mart Stores, Inc., founded in 1983 and named after Wal-Mart founder Sam Walton. , the Sam's Club chain serves more than 47 million U.S. members...
was opened in Oklahoma City
Oklahoma City, Oklahoma
Oklahoma City is the capital and the largest city in the state of Oklahoma. The county seat of Oklahoma County, the city ranks 31st among United States cities in population. The city's population, from the 2010 census, was 579,999, with a metro-area population of 1,252,987 . In 2010, the Oklahoma...
, Oklahoma
Oklahoma
Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state...
.
In the late 1980s, Price donated $2 million to the construction of a new student center on the campus of University of California, San Diego. Named for Price, the Price Center, which houses the main student bookstore, food court, movie theater, ballrooms, and meeting rooms, opened on April 21, 1989.
In 2011, the Price Family Charitable Fund donated $50 million to the University of Southern California's School of Policy, Planning, and Development
School of Policy, Planning, and Development
The USC Sol Price School of Public Policy , previously known as School of Policy, Planning, and Development , at the University of Southern California is a leading urban planning, public policy and public administration school in the United States...
. The school was renamed the Sol Price School of Public Policy as a result of the donation.
Price is responsible for injecting money and aiding the renaissance being experienced in the San Diego mid-city neighborhood City Heights, where he resided in the 1930s. He was a member of the Board of Trustees for the Urban Institute in Washington, D.C., the Board of Directors for the Center on Budget and Policy Priorities, the Consumer Affairs Advisory Committee of the U.S. Securities and Exchange Commission, and the San Diego Financial Review Panel.