Costco is looking to expand on its c-store business with the announcement that it will open its first ever stand-alone gas station in Mission Viejo, Calif, reported Fox Business. The city has approved plans from the retailer to demolish a former Bed, Bath and Beyond location to free up space for the site.
The location is planned to feature 40 fuel pumps, all of which will be accessible to Costco members only.
Fox Business also reported earlier this month that Costco is seeing record fuel sales after it extended its gas station hours. The retailer’s operating hours now run from 6 a.m. to 10 p.m. Monday through Friday, 6:30 a.m. to 8:30 p.m. on Saturday and 6 a.m. to 7:30 p.m. on Sunday.
In early march, Costco chief financial officer Gary Millerchip told investors that the company saw an immediate improvement in gallon sales following the extension of business hours, in addition to generally favorable fuel prices.
As of the end of 2024, Fox Business reported, Costco operates more than 700 gas stations across the U.S. and other countries.
Warehouse Retail Competition
Costco is not the only major big-box retailer looking to make a mark in the c-store space — in March of this year, Walmart announced that it would open 45 new fuel stations, with the first of the new locations opening earlier this year and several more planned for 2025.
Currently, Walmart operates 400-plus Fuel and Convenience stations nationwide. With the openings this year, the retailer will have more than 450 locations across 34 states.
The first Walmart Fuel and Convenience station opened in 2002.
These one-stop shops not only offer low prices at their pumps, but Walmart Fuel and Convenience stations offer the same low prices on snacks and beverages as what’s offered inside the Walmart store. Customers and Walmart+ members can shop the Fuel and Convenience stations, and Walmart+ members save up to 10 cents per gallon with their membership.
“We’re continuing to invest in our nationwide, physical store footprint. By adding dozens of fuel and convenience stations this year, we are bringing even more value to our customers,” said Dave DeSerio at the time of the move, VP of Fuel and Convenience, Walmart U.S. “Customers shop Walmart for our everyday low prices and convenience offerings, and fuel stations are another example of us responding to our customer and member needs.”
