Fedco
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| Department Store | |
| Industry | Retail |
| Founded | 1948 |
| Defunct | 1999 |
| Headquarters | Los Angeles, California |
| Products | clothing, footwear, housewares, jewelry, garden, furniture, appliances, sporting goods, produce, hardware, toys, electronics |
Federal Employees' Distributing Company, known as Fedco, was a membership department store chain that operated in Southern California from 1948 to 1999.
The chain was unusual in that it was a nonprofit consumers' cooperative. It was founded by 800 U.S. Post Office employees who wanted to leverage their buying power by purchasing goods directly from wholesalers, and eliminate the additional markup of a retail store. The Board of Directors, headed by Robert Kee, established the first store on Slauson Avenue in Los Angeles. Members would come into the store and find items they wished to purchase in various catalogs. As demand grew, the Board of Directors began to carry merchandise in the store. Business flourished and they took over adjoining storefronts. Under the guidance of Board President Robert Kee, FedScript was developed. This allowed for a form of "borrowing" but ensured that the funds could only be spent at Fedco. Lines included general merchandise, grocery, and, in some locations, auto services and furniture. Lifetime membership was less than five dollars for employees of the U.S. government, students, and their family members.
The organization of the company was similar that used for credit unions, in which the stores were owned and operated by a not-for-profit organization that was owned by its members, who elected a board of directors. Like a credit union, store membership was legally restricted to a defined group, but over the years, the membership pool was eventually widened to include anyone who had any relationship with the federal or local governments, as well as their employees, children, etc. It also included anyone who received regular payments from the government, such as social security pensions.
Membership cards were required to enter a store and to use a check as payment. However, it was very difficult to restrict non-members from purchasing from the stores in cash, since the lifetime membership cards did not include photographic ID pictures like that used by later membership stores such as Sam's Club; Anyone could borrow or take a member's card and just walk in. Names on the membership cards were only checked when a check was being used.
Fedco's lifetime membership cost $10 in 1998.
At its peak, Fedco had ten department stores plus three appliance-only stores, and served 4 million members.
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