Costco opens its first standalone gas station in Mission Viejo, California, to provide members with discounted fuel outside of its traditional warehouse layout.

Costco Wholesale has expanded its retail footprint by opening its first standalone gas station in Mission Viejo, California. The 17,185-square-foot facility features 40 fueling stations and is accessible exclusively to Costco Warehouse members. Unlike the company's traditional model, this location lacks a warehouse or convenience store, focusing entirely on providing high-value fuel to customers. The administration of the company noted that the new station offers regular gasoline for $4.59 per gallon, which is approximately 71 cents below the Orange County average. By offering aggressive pricing, the retailer aims to put pressure on nearby convenience store chains that may struggle to match its low margins. President and CEO Ron Vachris stated that the company is also deploying AI tools to optimize inventory and drive sales. While gas accounts for about 10% of total sales, the company uses it as a "high-octane magnet" to build member loyalty. A second standalone station is currently under development in Honolulu, Hawaii, with an expected opening in 2027.

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