About 40 years ago I met with Sol and his son Michael in San Diego, California, before they opened their first ‘Price Club’. They explained how they would only mark up merchandise 7%, to cover overhead. They would make their profit from membership fees.
Their first store was so successful that the highway exit leading to the Price Club warehouse had to be closed, because cars were lined up, waiting for parking spots, as far as the eye could see. A former Price club vice president started Costco several years later to compete, and eventually purchased and merged Price Club into Costco.
In my opinion, Sam’s Club and BJ’s is OK. Costco’s quality, selection and sometimes price, is better. They sell more wine, paper products (towels/toilet paper) and several other categories, than any other retailer in the world. Even though BJ’s and Sam’s Club are less than 10 minutes away from us, we will go to Costco in Clermont when we are within 30 minutes from their warehouse.
While Costco in The Villages will create a traffic problem, especially when the “seasonal residents/snowbirds” are in town, in my opinion it’s worth having the best warehouse club close by.
Perhaps Trader Joe’s will follow.
Mitchell Sheinbaum is a resident of The Villages.
