• by Tanya Gazdik , Yesterday

Costco is planning to open its first standalone gas station.

The station, expected to open next spring, will be located in Mission Viejo, California, in an area formerly occupied by Bed, Bath & Beyond. It will be two miles away from the nearest Costco retailer and will only be available to Costco members.

“The retailer reported its two highest-gallon sales weeks in the U.S. in April after extending gas station hours and opening new stations earlier this year,  according to Fortune. “CEO Ron Vachris said the extension of gas station hours in North America ‘was a great indicator that the throughput for our members improved nicely, and we saw that immediately in gallon increases.’”

Vachris said the company has also been upgrading its gas station facilities, with 60 locations at different phases of expansion as of March, according to USA Today.

Gas has been a pillar of Costco’s business model since the company built its first fueling station back in 1995. 

“The wholesaler operated 719 gas stations globally at the end of last year, which brought in about 12% of its global net sales, according to the company’s 2024 annual report,” according to C-Store Dive. “The project is a bold step for Costco, which appears to be investing more time and money into its gas station business, while also becoming more of a threat to traditional convenience retailers.”

"Mission Viejo Mayor Robert Ruesch said he expects the station to attract  thousands of drivers,” according to USA Today. 

Costco gas is “wildly popular with members because of the cheaper prices,” said Neil Saunders, a retail analyst at the research and analytics firm GlobalData, according to Arizona Republic.. “If successful, there are other locations where this could be implemented.”

The retailer has also started offering EV charging at some of its stores, according to Electrek.

The site will feature a 17,185-square-foot gas canopy with 40 fueling positions. It will be Costco’s largest gas station to date.

While 40 pumps might sound like a lot, it's a drop in the bucket compared to the number at mega-station like Buc-ee’s.

Most Buc-ee's locations have between 80 and 120 gas pumps. Some of the larger locations, like the one in Luling, Texas, have 120 pumps, according to CBS News.