Jim Sinegal

Costco operating principles, margin discipline

Jim Sinegal co-founded Costco Wholesale in 1983 and served as its CEO until 2012, building it into one of the world's largest retailers. His operating philosophy capped gross margins at roughly 14%, forcing efficiency gains rather than price increases, and prioritised above-market wages as a retention strategy. The Costco model — membership fees funding profit, merchandise sold near cost — became a case study in disciplined, founder-led retail.