James Tenser

Sol Price, Warehouse Club Pioneer, Passes Away

December 15, 2009

FROM RETAILWIRE:
Sol Price, one of the earliest pioneers of the warehouse club channel, who opened Price Club in San Diego in 1976, died Monday at the age of 93. What do you think are the greatest contributions that Sol Price made to retailing?      [more...]

I tip my hat to Mr. Price. He was born for retail. There may never be a more "fortuitously moniker'd" executive in our industry.

During the high-inflation '70s and early '80s, Price shrewdly calculated that by asking for modest membership fees upfront and turning merchandise three times before the supplier invoices came due, he'd never need to invest his own cash to grow the business.

In those days he could afford to sell goods at near-zero margins and still make a profit on the "float" due to the high bank interest rates and rapid sell-through.

It was a privilege to cover Price Club and its imitators in my early days as a retail reporter. Vaya con Dios, Sol.