And why is their private-label line called Kirkland Signature? We got to the bottom of these Costco mysteries.
Here’s What Costco Was Originally Called—And It’s Not for the Reason You Think
Published on Jun. 06, 2025
Costco: By now, it’s more than a household name—it’s more like a household magnet. With its deep membership perks, coveted private-label products and, of course, free samples, the superstore checks a lot of boxes.
As a Gold Star member, I’ll admit I’m a bit obsessed. Where else can I stock up on 4 pounds of quinoa, the cult-favorite $4.99 rotisserie chicken, a brand-new TV and a sweater I don’t technically need? There’s just something about flashing your membership card and telling yourself, “I’m only here for three things,” that’s all too exhilarating.
That could be why the mega-retailer—with 905 locations worldwide, including 627 in the United States—is among the top five most trusted brands in the U.S., according to a May 2025 Axios Harris poll.
But even though Costco is a shopping mecca, it’s amazing how little most of us actually know about the retailer. Case in point: Did you realize Costco used to go by an entirely different name? Read on to find out the story behind the Costco name … and where Kirkland Signature came from too.
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What was Costco originally called, and why?
Costco Wholesale Corporation, or Costco for short, was originally launched in 1976 under the name Price Club. Not what you expected, right? Founded by entrepreneur Sol Price, Costco chose an original name that was a clever take on both the founder’s last name and the store’s dedication to low prices. At the time, Price Club was the very first membership-driven wholesale warehouse in the world, and it was set up to provide wholesale discounts for small businesses, not the average American.
How did the name Costco come into play?
The first Costco Wholesale was opened by Jim Sinegal and Jeff Brotman in September 1983. Like Price, both founders had experience in the retail distribution business. In fact, Sinegal worked at Price’s very first warehouse initiative, FedMart. Price Club was based in Southern California and focused on selling a limited product range; it didn’t have plans to expand quickly. This provided the opportunity for other wholesale retailers, like Costco and Sam’s Club, to infiltrate the market.
When did Price Club become Costco?
In 1993, Price Club merged with Costco Wholesale Corporation. They became one company: PriceCostco, worth over $14 billion, according to the Los Angeles Times. At the time, Price Club ranked second to Sam’s Club in sales, with Costco taking third. The merger catapulted PriceCostco to the top of the heap of warehouse retailers.
In 1997, PriceCostco became Costco Companies, and in 1999, it evolved into the name we know and love today: Costco Wholesale Corporation—or Costco, for short!
What does the name Costco mean, exactly?
This is one of Costco’s best-kept secrets: No one knows for sure what the name Costco means. The internet’s best guess is that it’s a shorthand version of “Cost Company.” Considering the retail giant’s dedication to offering customers the lowest costs on wholesale items, this is the most plausible explanation. But until Costco confirms this theory, the jury is still out on the meaning of Costco’s name.
How did Costco’s Kirkland Signature line get its name?
The Kirkland Signature name may seem random (how do you get “Kirkland” from “Costco Wholesale”?), but it actually honors a very important stepping stone in the Costco story. The Kirkland name was inspired by the second Costco headquarters in Kirkland, Washington.
As Costco grew, Sinegal wanted to create a signature brand solely associated with Costco. Seeing how well some other stores, including Tesco and Sainsbury in the United Kingdom, were doing with private labels, he knew there was an opportunity for private-label success at Costco. Sinegal told the Wall Street Journal, “We said, ‘Well, if we’re going to do this, let’s have some standards.” From there, Costco carefully picked products that consumers might fall in love with … and associate with Costco’s private label.
By the time Sinegal hatched this revolutionary idea to create a single-label product in 1995, the company had already moved its headquarters from Kirkland to its current location in Issaquah, Washington. So why did the brand choose the name Kirkland? As Sinegal said, “Nobody could spell Issaquah, so we kept it.”
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Sources:
- Axios: “Microsoft and Costco named among most trusted brands”
- Los Angeles Times: “Price Co., Costco Warehouse Stores to Merge”
- Wall Street Journal: “How Costco’s Co-Founder Built the $400 Billion Retailer Behind Kirkland”
