Costco Opens First Standalone Gas Station in Mission Viejo, California
Costco opened its first standalone gas station in Mission Viejo, California, on June 24, 2026, selling regular gas at $4.59/gallon—71 cents below the Orange County average. The 40-pump facility is members-only and aims to relieve capacity constraints at warehouse-adjacent stations. A second standalone station is planned for Honolulu. The move pressures convenience store chains like Circle K and 7-Eleven, as Costco treats fuel as a membership benefit, not a profit center. Record fuel volumes were reported in Q3 2026.
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Costco Builds Standalone Gas Stations Due to High Demand and Space Constraints
Costco is opening standalone gas stations separate from its warehouses to meet high customer demand for discounted fuel. The first station is operating in Southern California, with a second planned for Honolulu, both located a mile or two from the nearest Costco store. CFO Gary Millerchip explained the move addresses capacity constraints at existing warehouse gas stations or the inability to add pumps on the same premises. CEO Ron Vachris reported that the five weeks ending mid-May were the highest gas-sales weeks in company history, and first-time fuel customers tend to increase overall spending. The retailer continues to see strong member engagement, with other products like a retro Esprit fleece crewneck also selling out quickly.
Costco opens first standalone gas station in Southern California
Costco has opened its first standalone gas station in Mission Viejo, California, as record fuel demand at its warehouse pumps strains existing capacity. The station features a 17,185-square-foot canopy covering 40 fueling positions and is limited to Costco members. Built on the site of a former Bed Bath & Beyond, a second standalone station is planned for Honolulu. CFO Gary Millerchip said the standalone locations aim to relieve capacity constraints at existing warehouse gas stations and serve areas where a gas station cannot be built on the same property. Costco reported record gasoline volumes during its fiscal third quarter, with the five weeks ending in mid-May producing the highest gas-sales weeks in company history. The company prices fuel below the regional average, with the Mission Viejo location charging $4.75 per gallon compared to the Orange County average of $5.39. Millerchip noted the company is moving carefully with its standalone gas station plans, with a couple more locations in the pipeline.
Costco opens first standalone gas station in Southern California
Costco has opened its first standalone gas station in Mission Viejo, California, as record fuel demand at its warehouse pumps strains existing capacity. The station, which opened on June 24, features a 17,185-square-foot canopy covering 40 fueling positions and is limited to Costco members. It was built on the site of a former Bed Bath & Beyond. A second standalone station is planned for Honolulu. Costco CFO Gary Millerchip said the standalone locations are intended to relieve capacity constraints at existing warehouse gas stations or serve areas where a gas station cannot be built on the same property. The new format reflects broader real-estate experimentation as Costco finds it harder to acquire large land parcels. Costco reported record gasoline volumes during its fiscal third quarter, with the five weeks ending in mid-May producing the highest gas-sales weeks in company history. The Mission Viejo location priced regular gas at $4.75 per gallon, significantly below the Orange County average of $5.39.
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Costco opens first standalone gas station, undercutting rivals by 71 cents per gallon
Costco has quietly opened its first standalone gas station in Mission Viejo, California, selling regular gasoline at $4.59 per gallon — roughly 71 cents below the Orange County average. The move signals a potential expansion beyond traditional warehouse-adjacent fuel stations. CFO Gary Millerchip noted that about half of gas station customers also shop inside Costco warehouses, and the company views fuel as a membership benefit rather than a profit center. A second standalone station is planned for Hawaii. Retail analysts say the strategy could pressure major convenience store chains like 7-Eleven, Circle K, and BP America, which may struggle to match Costco's aggressive pricing. Gasoline accounts for approximately 10% of Costco's total sales.
Costco Opens First Standalone Gas Station, Intensifying Competition with Convenience Stores
Costco has quietly opened its first standalone gas station in Mission Viejo, California, selling regular gasoline at $4.59 per gallon—roughly 71 cents below the Orange County average. The move signals a potential expansion beyond traditional warehouse-adjacent fuel stations, bringing Costco's low-price gas model closer to members who don't live near a warehouse. CFO Gary Millerchip noted that about half of gas station members also shop inside the warehouse, and that higher gas prices make Costco's value proposition more attractive. The standalone station puts pressure on major convenience store chains like 7-Eleven, Circle K, and BP America, which may struggle to match Costco's aggressive pricing. Costco has also announced plans for a second standalone station in Hawaii, though the company has not detailed broader expansion plans. Gasoline accounts for about 10% of Costco's total sales, and the company treats fuel as a membership benefit rather than a profit center.
Costco Opens First Standalone Gas Station in California
Costco officially opened its first standalone gas station in Mission Viejo, California, on June 24, 2026, marking a strategic expansion of its fuel business. The 17,185-square-foot facility features 40 fueling positions and is accessible only to Costco Warehouse members. The station sells regular gasoline at $4.59 per gallon, roughly 71 cents below the Orange County average, which is expected to pressure nearby convenience retailers like Circle K, ExtraMile, and BP. Costco already has a second standalone gas station in development, though broader expansion plans remain unclear. During the company's third-quarter earnings call, CEO Ron Vachris reported record fuel volume sales, and CFO Gary Millerchip noted that the fuel business is strengthening customer loyalty, with some long-time members using Costco gas stations for the first time. The move underscores Costco's emphasis on fuel as a key driver of membership value and competitive advantage.