Jun 15, 2025, 8:20 AM
Jun 15, 2025, 8:20 AM

Costco introduces first standalone gas station in California

Highlights
  • Costco has received approval to build a standalone gas station in Mission Viejo, California.
  • The new station will feature 40 pumps exclusively for Costco members with no convenience store.
  • This move highlights Costco's strategy to enhance fuel sales and member services in a competitive market.
Story

In California, Costco has received approval to construct its first standalone gas station, which is expected to open by spring. This new facility will feature 40 fuel pumps exclusively accessible to Costco members, targeting users who inquire about competitive fuel prices. The location will be at the Mission Viejo Freeway Center, taking over a former Bed, Bath and Beyond store. The gas station will not incorporate a convenience store, focusing solely on gasoline sales. Anticipating customer demand, Costco's gas station will be situated just 2.5 miles from its established Laguna Nigel warehouse, where fuel is currently sold at $4.35 per gallon. California's gasoline prices are notably variable, with rates ranging currently from $3.03 to an average of $4.61 per gallon. The strategic placement of the gas station reinforces Costco's commitment to offering competitive pricing and fostering customer loyalty among its membership base. Earlier this year, Costco CEO Ron Vachris highlighted record fuel sales in the U.S., citing increased gas station operating hours as a contributing factor. The company has adjusted its gas station hours to better serve members, operating from 6 a.m. to 10 p.m. on weekdays, with slightly reduced hours over the weekend. Vachris noted significant weeks earlier this year, which have driven sales through innovative adjustments in station operations and extended service. The establishment of this standalone gas station marks a pivotal move for Costco, as it navigates market dynamics within the fuel industry. With expanding customer engagement around fuel purchases, the new gas station is poised to enhance the company's service framework in California, where gas prices fluctuate widely. This pioneering venture aligns with Costco's ongoing strategy to expand its footprint in the fuel retail sector while catering exclusively to its members, showcasing a shift in traditional fuel accessibility in the area.

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