News Summary
Costco plans to open its first standalone gas station in Mission Viejo, California, featuring a 17,185-square-foot canopy and 40 fueling positions. Slated for construction in fall 2025 and opening in spring 2026, the facility targets Costco members and will replace a former Bed Bath & Beyond store. The gas station will host three 40,000-gallon underground tanks and offer competitive pricing amidst local fuel competition. This development aims to address the high demand for affordable gasoline in the region.
Mission Viejo to Welcome California’s Largest Standalone Costco Gas Station
Costco, the popular wholesale retailer, is set to open its first standalone gas station in Mission Viejo, California, located at 25732 El Paseo. This new facility is anticipated to become the largest fueling site for the retailer to date, featuring an impressive 17,185-square-foot canopy and accommodating up to 40 fueling positions.
Construction Timeline and Features
Construction of the gas station is scheduled to commence in the fall of 2025, with an ambitious target opening date set for spring 2026. The facility will exclusively cater to Costco members, which aligns with the company’s typical operational model. It will replace a former 35,020-square-foot Bed Bath & Beyond store, providing a new service in a busy shopping area that also includes other retailers such as Krispy Kreme, Petco, and Best Buy.
The gas station will house three 40,000-gallon underground storage tanks and include six dedicated parking spaces for convenience. Operating hours are planned to be from 5 a.m. to 10 p.m., seven days a week, ensuring that members have access to fuel during peak times. The operations will be supervised by Costco employees to maintain service quality and safety.
Market Competition and Strategy
The new gas station will face competition from nearby fueling stations operated by Circle K, Chevron, and BP. As gas prices in California currently average $4.65 per gallon, Costco’s entry into the market is anticipated to provide a viable alternative for consumers seeking lower-priced fuel. Analysts suggest that this development could help meet the growing demand for more fueling options in Southern California, particularly amidst high fuel prices and limited competition relative to the number of drivers in the area.
Costco’s Gasoline Operations
Costco currently operates 719 gas stations worldwide, which contributed approximately 12% to the company’s global net sales in 2024. The decision to expand gas stations is part of a broader trend among big-box retailers, with competitors like Walmart ramping up their gas station presence. Walmart recently opened its 400th gas station in late 2024, with plans to grow to around 450 locations by 2025.
During a recent earnings call, Costco’s CEO highlighted the significant revenue generated from gas stations and the company’s plans to extend operating hours in response to customer demand. However, unlike traditional gas stations that often include convenience stores, the new Costco gas station in Mission Viejo will be a gas-only facility focusing solely on fuel sales, without any additional retail or automotive services.
City Reviews Development Plans
Costco has submitted its plans for grading and construction permits, which are currently under review by the city of Mission Viejo. The establishment of this facility is not just a strategic business move for Costco; it also represents an effort to meet consumer needs in a region characterized by a high demand for fuel at competitive prices.
As the project progresses through the planning stages, interested members of the community and potential customers are eager to see how this new gas station will impact the local fueling landscape. The anticipated opening in spring 2026 will likely provide residents with an additional fueling option, contributing to Costco’s ongoing efforts to enhance its service offerings.
Deeper Dive: News & Info About This Topic
HERE Resources
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Additional Resources
- SFGate: Costco First Stand-Alone Gas Station in California
- Orange County Register: Costco’s First Standalone Gas Station in Mission Viejo
- CSP Daily News: Costco to Build First Standalone Gas Station
- Patch: Costco’s First Standalone Gas Station in Mission Viejo
- Orange County Register: Costco Plans More Developments
- Wikipedia: Costco
- Google Search: Costco gas station Mission Viejo
- Google Scholar: Costco gas station
- Encyclopedia Britannica: Costco
- Google News: Costco gas station Mission Viejo
