• Costco Wholesale Corporation is a membership-only warehouse club that

• provides a wide selection of merchandise. As of July 2012 [update], it is the second

• largest retailer in the United States, the seventh largest retailer in the world and the largest membership warehouse club chain in the United States.[

• Founded by James (Jim) Sinegal and Jeffrey H. Brotman, Costco opened its first warehouse in Seattle, Washington, on September 15, 1983.

• Over the years, Costco has gradually expanded its range of products• andservices. Initially it preferred to sell only boxed products that could • be dispensed by simply tearing the stretch wrap off a pallet. It now sells • many other products that are more difficult to handle, such as fresh produce, • meat, dairy, seafood, fresh baked goods, flowers, clothing, books, computer • software, vacuums, home appliances, home electronics, solar panels,

jewelry, • tires, art, fine wine, hot tubs, furniture and caskets. Many warehouses have • tire garages, pharmacies, hearing aid centers, optometrists,photoprocessors,

and gas stations.

• Costco introduced Kirkland Signature as its house brand in 1995. The idea was to identify categories in which a private label product could provide brand name quality at discounted prices.

• To counteract the consumer confidence problem common in store branding, Kirkland Signature sometimes relies on co-branding. According to Costco, while consumers may be wary of same-store-branding, they are less likely to be wary of brands that they are familiar with and trust.