Source: EconLog
by Art Carden
“Sol Price did not set out to change retail. He stumbled into it by accident and alertness. He was an active member of his community in San Diego and served as a lawyer for several retailers and wholesalers, including those in jewelry and liquor, who sold to a Los Angeles store called Fedco. He accompanied his clients to Los Angeles to visit a Fedco store. Fedco was a store that sold to government employees at deep discounts. Price observed that many government employees commuted from San Diego to Los Angeles, and he believed a similar store could do well in San Diego. He and his partners presented their proposal to Fedco, which rejected it. Price, however, had a warehouse in San Diego he needed to do something with, and he thought, ‘Why not do in San Diego what Fedco doesn’t want to?'” (06/04/26)
https://www.econlib.org/econlog/commerce-and-warehouse-clubs