Jun 3, 2025, 6:00 AM
Jun 3, 2025, 6:00 AM

Costco achieves record fuel sales after extending gas station hours

Highlights
  • Costco extended its North American gas station hours, increasing access for members.
  • The company reported record fuel sales with higher member usage and satisfaction.
  • These changes indicate a successful strategy to enhance operational efficiency and member experience.
Story

In early 2025, Costco expanded its gas station hours at various locations in North America, leading to a significant boost in fuel sales. The company achieved record-breaking sales figures, reporting two of the highest gallon weeks in its history during the months of April and May. This new strategy involved gas stations opening earlier at 6 a.m. and closing later at 10 p.m. on weekdays, while still maintaining shorter hours on weekends. This decision can be traced back to Costco's aim of enhancing member convenience and satisfaction through improved access to fuel. The decision to extend hours was publicly announced via a Facebook post in mid-February, outlining the new operational times. The company recorded an increase in member reactions and overall usage of gas stations following the changes. Costco CEO Ron Vachris mentioned that the increased fuel sales were heavily influenced by lower pump prices, as well as the strategic expansion of its gas station operations. The extended hours offered members more flexibility and ease in fueling their vehicles, contributing positively to member satisfaction and engagement. Costco operates over 700 gas stations globally, but specific counts for newly opened stations were not disclosed during the recent earnings call. However, it was emphasized that the changes have led to significant increases in fuel gallons sold. The extended hours have become a key indicator of improved throughput for members, signaling that the adjustments positively affected Costco's gas station business. As fuel stations are only accessible to Costco members and authorized customers, this decision not only attracts more visitors to the gas stations but also drives additional foot traffic to Costco's warehouses. The warehouse retailer's diverse services include pharmacies, food courts, optical centers, and tire installation services, all functioning as ancillary businesses to the primary warehouse offering. With over 620 locations in the U.S. and an additional 280 across the globe, Costco's strategic movements in the fuel sector reflect its initiative to enhance member experience and operational efficiency.

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