Costco is set to open a stand-alone 40-bay gas station in Mission Viejo, California, its first of this kind, as the retailer looks to capitalise on the strong demand for its discounted fuel offering.
Located two miles from two existing Costco warehouses, one of which already has a gas station, the new site will replace a former Bed Bath & Beyond and is expected to open in spring 2026.
Planning documents suggest the station will see more than 9,500 vehicles daily and up to nine fuel truck deliveries.
The move follows extended hours at existing Costco gas stations, which led to increased fuel sales.
Analysts say the new format could appeal to members who want cheaper fuel without entering the warehouse.
Fuel is a major revenue stream for Costco, generating about $30 billion last year, nearly one-eighth of its total sales.
Offering consistently low prices and 5% cashback to Costco credit cardholders, gas is a key driver of member loyalty.
Retail analysts see the Mission Viejo project as part of Costco’s strategy to ease congestion at busy warehouses and maintain value for members in high-density markets.
While Costco declined to comment, CEO Ron Vachris has previously said the company is exploring ways to “strategically” shift traffic away from overcrowded warehouses.
Click here to sign up to Retail Gazette‘s free daily email newsletter
