Dive Brief:
- Costco is planning its first standalone gas station, which would be its largest fueling site to date, a spokesperson from Mission Viejo, California, confirmed to C-Store Dive.
- The big-box giant is expected to begin building the Mission Viejo gas station this fall, with an estimated completion date in spring 2026, the city’s spokesperson said. The site will feature a 17,185-square-foot gas canopy with 40 fueling positions and will only be accessible to Costco Warehouse members, who will need their membership info to access the pumps, according to city planning documents.
- 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.
Dive Insight:
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.
Costco CEO Ron Vachris said during the company’s recent earnings call in May that Costco has expanded its gas station hours, opened new fueling sites and reached two of its all-time highest gallon weeks in April.
That focus seems to be taking shape with Costco’s first standalone gas station, which will replace a 35,020-square-foot commercial building that was formerly a Bed Bath & Beyond, according to city planning documents.
Besides 40 fueling stations, the site will include six parking spaces, three 40,000-gallon underground storage tanks and an employee breakroom with a restroom, according to city planning documents. It will operate from 5 a.m to 10 p.m. Sunday through Saturday and be supervised by Costco employees.
Once built, the station will compete directly with Circle K, Chevron and BP, all of which have fueling sites down the street. Costco recently submitted plans to the city of Mission Viejo for both grading and building permits, the city spokesperson said.
Costco isn’t the only big-box retailer increasing its focus on gas stations. In late 2024, Walmart opened its 400th gas station, and in March, the company revealed plans to reach about 450 locations across the country by the end of 2025. If Walmart reaches that goal, it’ll be one of the 20 largest c-store chains in the U.S. by store count.
