Costco Wholesale opens its first standalone gas station in Mission Viejo, California, to provide members with discounted fuel outside of its warehouse stores.
Costco Wholesale opened its first standalone, fuel-only retail location in Mission Viejo, California, in late June. The 17,185-square-foot facility features 40 fueling stations and is accessible exclusively to Costco Warehouse members. This move marks a departure from the company's traditional model of integrating gas stations within its large warehouse footprint. The new station aims to provide better value to members who may not live near a warehouse. While gasoline accounts for only about 10% of total sales, the company uses aggressive pricing to drive store visits. Costco officials noted that the standalone model puts pressure on traditional fuel vendors, as the wholesaler can maintain thinner profit margins due to its massive scale. The company is also developing a second standalone station in Honolulu, Hawaii, expected to open in 2027. By expanding its fuel reach, Costco seeks to maintain its position as a pricing authority, leveraging discounted gas to keep members engaged with the brand.