- These companies also have something in common: they're all members-only warehouse clubs.
- Costco, Sam's Club, and BJ's are by no means pioneers, through.
- Plenty of similar, now-defunct ventures launched long before those companies came on the scene.
- Visit BusinessInsider.com for more stories.
ADVERTISEMENT
7 now-defunct membership-only retailers that burst onto the scene before Costco or Sam's Club
Costco , Sam's Club , and BJ's are three ubiquitous retailers.
fedmart
ADVERTISEMENT
Costco, Sam's Club, and BJ's are retailers that thrive on a members-only model.
But these modern-day companies certainly didn't invent the concept of a membership-based retail chain. In fact, the founders of Costco and Walmart Sam's Club's parent company likely derived inspiration from now-defunct companies that came before.
ADVERTISEMENT
Some of these early companies catered exclusively to fixed-income federal employees. Others were snatched up by rival membership stores.
Here's a list of members-only warehouse- and department-store clubs that are no longer with us:
Fedco or the Federal Employees Distributing Company was the 1948 brainchild of hundreds of postal workers looking for a better place to shop. Despite its pioneering efforts in the members-only warehouse business, Fedco ultimately filed for bankruptcy in 1999.
BusinessInsider USA Images
Wikimedia Commons
ADVERTISEMENT
Inspired by Fedco, Sol Price whose Price Club chain would ultimately merge with Costco founded FedMart in 1954. Costco founder James Sinegal himself worked at FedMart before moving on to found his own venture. The company ultimately liquidated its 46 warehouses in 1982 and closed its doors forever.
BusinessInsider USA Images
Atsushi Tsukada/AP Images
Source: San Diego Reader , UPI
ADVERTISEMENT
Its not quite fair to say that Price Club, which opened its doors in 1976, is a defunct members-only warehouse. But Costco did erase the Price Club brand when the two retailers merged in 1993. By 1997, all the remaining Price Clubs or "blue warehouses," as early employees called them had been retooled as Costcos.
BusinessInsider USA Images
Keith Beaty/Toronto Star via Getty Images
Source: Business Insider , The New York Times , Costco
E.J. Korvette didnt start out as a members-only outlet. The retailer, which closed in 1980 after 32 years in business, pivoted to that business model after competitors like Gimbels and Macys filed suit about E.J. Korvettes low prices. The New York Times reported that E.J. Korvette employees would hand out cards to "members" as they entered the stores.
ADVERTISEMENT
BusinessInsider USA Images
John J. Meola / Wikimedia Commons
Source: Haaretz , The New York Times , New York Supreme Court
The Government Employees Mart or G.E.M. Membership Department Stores catered exclusively to civil servants, members of the military, and government contractors. The company launched in 1956. According to the Democrat and Chronicle, the chain shut down in 1973.
BusinessInsider USA Images
ADVERTISEMENT
Neil Podol/Shutterstock
Source: Circuit City , Democrat and Chronicle
After bursting onto the scene in Anaheim, California, in 1959, Gemco was quickly snapped up by Lucky Stores. In 1986, The Los Angeles Times reported that Lucky Stores sacrificed its members-only warehouse club in order to stave off a hostile takeover. All Gemco warehouses closed that year.
BusinessInsider USA Images
ewjxn/Youtube
ADVERTISEMENT
Source: The Los Angeles Times , UPI
Founded in Aurora, Colorado in 1983, the Pace Membership Warehouse chain faced a fate similar to that of Price Club. Kmart acquired the brand for $322 million in 1989, only to sell it to Sams Club four years later. The Walmart-owned retailer ultimately converted all of the Pace warehouses to Sams Club locations.
BusinessInsider USA Images
Charles Krupa/AP Images
ADVERTISEMENT
See Also:
SEE ALSO: 11 once-popular grocery stores that disappeared forever
DON'T MISS: Why Home Depot's cofounder chased unsatisfied customers through the store's parking lot in the retailer's early days
SEE ALSO: Here's what Home Depot looked like when it first opened in 1979
FOLLOW BUSINESS INSIDER AFRICA
ADVERTISEMENT
Recommended articles
10 African countries with the smallest merchant marine fleet
Beyond the reels: How augmented reality could revolutionize online slots
Effective real estate arbitrage strategies for wealth building
Amazon online shopping comes to South Africa
Nigerian officials accused of seeking $150 million bribe from Binance to dissolve case
Accelerating insurance penetration: A digital revolution in emerging markets
Nigeria's action against Binance execs sets a dangerous precedent, CEO says
5 African cities with the most financially stable people