James D. Sinegal was a grocery bagger at San Diego’s FedMart; he rose through retail and co-founded Costco in 1983

Before he became a name inseparable from the history of Costco, James D. Sinegal worked a job stocking shelves at a discount store. This job became an early training ground for Sinegal on his path to co-founding Costco. It all started back in 1954, when he entered San Diego Junior College and began working at FedMart. He would eventually climb up the ladder, from grocery bagger to executive vice president, before joining Seattle retailer Jeff Brotman to establish Costco in 1983.His early career went from FedMart to working in the capacity of executive roles at various companies, a chronology traced by the University of Portland. According to the California Community Colleges Chancellor’s Office, Sinegal attended San Diego Junior College, which was later renamed San Diego City College, before he transferred to San Diego State University. His college experience revived his interest in education after high school. For this, Sinegal tipped his hat to the community college system for the opportunity to continue his education.The blueprint of a retail giantSinegal’s rise through the ranks of FedMart went beyond the scope of store-floor work. He served as the executive vice president at the helm of merchandising and operations. According to the California Community Colleges Chancellor’s Office, the same office lists his next move as vice president from 1977 to 1978. He became the executive vice president of the Price Company from 1978 to 1979. Between 1979 and 1983, he worked at Sinegal/Chamberlain and Associates as a broker and sales representative for food and non-food products.Sol Price was Sinegal’s principal mentor and a major influence on his career. Working for Price left a lasting impression on Sinegal; he had wanted to pursue law but chose business after several months at FedMart. He said: “I wanted to be like Sol Price”.Sinegal and Brotman founded Costco in Seattle in 1983. Their launch strategy hinged on a radical premise: strip retail down to its bare bones by cost-cutting. As per the University of Portland, they removed store fittings, large sales teams, the delivery system, advertising and reserve inventory. Sinegal also imposed a 14% ceiling on mark-ups for national brands, a policy intended to keep prices low for members, the University of Portland noted.Sinegal’s innovative decision-making would make Costco one of the first warehouse clubs to include fresh food, eye-care clinics, pharmacies and petrol stations, according to the Chancellor’s Office. In 1993, Costco merged with Price Club, founded by Sol Price, and became PriceCostco. Price would leave the company in 1994. The business became Costco Companies in 1997, and Price Club stores were rebranded. It became Costco Wholesale in 1999.Higher wages and a people-first management style Sinegal’s approach to staffing became part of Costco’s management model. He visited stores and kept tabs on customer comments. For Sinegal, employees’ welfare was non-negotiable, so he put them ahead of shareholders. He believed that higher wages helped retain workers and support the communities where Costco operated. Sinegal worked without any executive pretence, led by example, wore a simple name tag that read “JIM”, answered his own telephone, and sometimes stocked shelves himself.According to a 2024 Harvard Business School article, Costco reportedly paid $26 an hour, compared to other retailers that paid $17. Costco’s employee turnover rate was 8%, compared to 60% at other retailers. Singel himself followed the company’s management model and took an annual salary of $350,000 for many years. A modest number compared with what chief executives at Fortune 100 companies took close to $1million.Moreover, around 90% of Costco employees qualified for employer-sponsored health insurance. According to an Inc. report in 2026, Sinegal stepped down as Costco chief executive in 2011, after 28 years. He remained on Costco’s board until 2018. The California Community Colleges Chancellor’s office records his retirement as taking effect on 31 December 2011. San Diego State University profile also reported that he continued as a company advisor and served as an executive in residence at its Fowler College of Business. He also volunteered on the University’s Campanile Foundation Board and Fowler College of Business Advisory Board.You use AI every day. Now get your AI Quotient. Take the AIQ test.