News Summary
Costco is preparing to launch its first standalone gas station in Mission Viejo, California, set to open in spring 2026. Located at a former Bed Bath & Beyond site, the gas station will feature 40 double-sided pumps to accommodate up to 9,500 vehicles daily. The project aims to enhance revenue while minimizing congestion at nearby warehouses, amid competitive fuel market dynamics. With growing gasoline sales, Costco anticipates significant revenue boosts from this initiative as it expands its operational footprint in the area.
Mission Viejo, California
Costco is set to launch its first standalone gas station in Mission Viejo, California, with an anticipated opening in spring 2026. Located at the site of a shuttered Bed Bath & Beyond, the new gas station will be equipped with 40 double-sided pumps and covered by a 17,185-square-foot canopy, allowing it to serve a significant number of vehicles daily.
Project Details and Timeline
The gas station project received the green light from city planners in March 2025, paving the way for construction to begin in the upcoming fall 2025. Designed to accommodate up to 9,500 vehicles a day, the facility will operate from 5 a.m. to 10 p.m., seven days a week, all under the supervision of Costco employees. With only six designated staff parking spaces, the setup is designed to alleviate parking congestion that is often seen at Costco’s nearby warehouses.
Market Competition and Strategic Planning
This new gas station is part of Costco’s broader strategy to capture traffic from nearby freeways without the need for additional large warehouse expansions in high-cost areas. This model is expected to compete directly with existing fuel providers in the region, including Circle K, Chevron, and BP. Experts estimate that Costco operates around 719 gas stations worldwide, drawing in members with competitive pricing, making this standalone station a critical addition to the company’s offerings in the area.
Financial Aspects and Growth Projections
Fuel sales have become an important revenue stream for Costco, accounting for approximately 12% of its $249 billion annual revenue. By introducing the standalone gas station model, Costco expects its gasoline revenue to reach about $30 billion by 2024. Furthermore, this initiative may serve to relieve the pressure faced by Costco’s current warehouse gas stations, which often have long wait times during peak hours.
Facility Specifications
The gas station will feature three underground storage tanks, each with a capacity of 40,000 gallons, ensuring ample supply. While the gas station will primarily focus on fuel sales, the design does not prioritize parking for non-staff visitors, as the goal is to streamline access and minimize congestion.
Community Concerns and Future Expansion
Although the standalone model promises several benefits, some community concerns have been raised, particularly regarding increased diesel truck traffic related to fuel deliveries. However, local regulations will limit these deliveries to daylight hours, hopefully mitigating any potential disruptions. The success of this gas station model in Mission Viejo will be monitored closely by Costco, potentially paving the way for similar expansions in other dense metropolitan areas if the initiative proves fruitful.
Conclusion
This new standalone gas station aligns with Costco’s objectives to enhance member loyalty while efficiently managing parking at busy warehouse locations. As the company continues to explore innovative solutions for growth and customer satisfaction, the Mission Viejo gas station signifies a strategic step in their operational expansion.
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Additional Resources
- Orange County Register
- Wikipedia: Costco
- USA Today
- Google Search: Costco gas stations
- Fortune
- Encyclopedia Britannica: Costco
- Supermarket News
- Google News: Costco gas station Mission Viejo
