Costco extends gas station hours to boost member convenience

In February 2025, Costco Wholesale Corp., headquartered in Issaquah, Washington, announced changes to its gas station operations across North America in response to declining comparable gas sales. This decision came after the retailer experienced a drop in gas sales during the three-month period ending on February 18, 2025, driven primarily by a slight decrease in the average price per gallon of gasoline. During an earnings call, CFO Gary Millerchip explained that gas sales had negative low single-digit comp percentages as the national average for gas prices began to decline following April 2024, reaching $3.20 a gallon by September. As part of their strategy to attract more customers and promote convenience for membership, Costco's gas stations are now open an hour later than before, with some locations also opening earlier. CEO Ron Vachris highlighted these extended hours, specifically running from 6 a.m. to 10 p.m. on weekdays, 6 a.m. to 8:30 p.m. on Saturdays, and 6 a.m. to 7:30 p.m. on Sundays. However, the availability of these hours may vary for members in California and Hawaii. The desire to improve member experience and engagement appears to be the driving force behind this operational adjustment. Vachris mentioned ongoing expansion phases for around 60 U.S. gas stations, indicative of the company's long-term growth strategy in gas services. Given the competitive landscape in the fuel market, enhancing member access and convenience is crucial for Costco, which differentiates itself by offering lower prices on fuel compared to its competitors. As a result of these extended hours, early reports indicated a positive member response, suggesting that Costco's approach to enhancing convenience at their gas stations may lead to improved usage over time. Despite it being early in the process, both executives express optimism regarding this new strategy and its impact on overall member satisfaction and usage of their gas stations.