Costco has officially launched its first standalone gas station in Mission Viejo, California, marking a new phase in the retailer's fuel operations. The facility opened in late June, with a ribbon-cutting ceremony held on June 24, according to a city spokesperson. The site is located approximately 50 miles southeast of downtown Los Angeles.
The station features a 17,185-square-foot canopy equipped with 40 fueling positions. Access is restricted exclusively to Costco Warehouse members. The retailer is already developing a second standalone location, though the scope of future expansion for this specific concept remains unclear.
Fuel pricing at the new site is set at $4.59 per gallon for regular gasoline. This rate is approximately 71 cents lower than the Orange County average, based on data from AAA. The aggressive pricing strategy is expected to create significant competition for nearby convenience retailers, including Circle K, ExtraMile, United Pacific, BP, and Shell locations.
The launch aligns with Costco's broader emphasis on its fuel business. During a third-quarter earnings call in May, President and CEO Ron Vachris noted that each four-week period of the quarter set new volume sales records. He highlighted that the final five weeks of the quarter represented the company's highest-volume fuel weeks in its history.
Executive Vice President and Chief Financial Officer Gary Millerchip stated that the fuel business is strengthening customer loyalty across Costco's broader operations. Millerchip observed that some long-standing members are using the gas stations for the first time, which he described as an encouraging sign for long-term loyalty.
