Costco Plans First Standalone Gas Station in Mission Viejo

Categories: Business NewsConstructionNewsTransport

Costco's first standalone gas station is set to enhance the local fuel supply in Mission Viejo.

News Summary

Costco is set to open its first standalone gas station in Mission Viejo, California, featuring 40 fuel pumps for members. Construction will begin this fall on the site of a former Bed, Bath & Beyond, with a completion date anticipated in spring 2026. Local officials highlight the potential economic benefits and enhanced fuel accessibility in the area amid rising gas prices. This initiative is part of Costco’s strategy to expand its operations in Southern California and cater to the growing demand for affordable fuel.

Mission Viejo, California – Costco has announced plans to open its first standalone gas station at 25732 El Paseo, marking a significant development for the city’s fuel supply. This new facility, which will be the largest fuel operation by Costco to date, will feature 40 fuel pumps exclusively for Costco members.

City officials granted approval for the discretionary application for the gas station on March 10, 2023. Construction is set to begin in the fall of this year, with an anticipated completion date in the spring of 2026. The current site, which houses a shuttered Bed, Bath & Beyond, will be demolished to make way for the new gas station. It is important to note that the facility will not include any retail or automotive sales services.

Economic Impact and Customer Focus

Mayor Bob Ruesch expressed optimism about the upcoming project, citing its potential to meet local fueling needs and create a new business partnership for the Freeway Center. This gas station aligns with Costco’s strategic move to expand its footprint in Southern California, where the company has other locations planned.

The demand for affordable fuel options is pressing, as current gas prices in California average around $4.65 per gallon. With this new gas station, Costco hopes to attract gasoline buyers who prioritize price, leveraging its reputation for competitive pump prices. During the company’s third-quarter earnings call, Costco reported record fuel sales at its existing member-only stations. The CEO attributed this growth to extended gas station hours, new openings, and the competitive pricing model employed by the warehouse club.

Strategic Location and Market Trends

Located near a busy shopping area that features well-known retailers like Krispy Kreme, Petco, and Best Buy, the station is about two miles from the nearest Costco retail store. The decision to open a standalone gas station contrasts with the traditional model where gas stations are typically accompanied by convenience stores that can generate significant additional sales. Industry experts suggest that Costco’s approach may be a calculated risk aimed at capitalizing on the price-driven market in fuel sales.

This significant project in Mission Viejo is part of a broader trend of Costco expanding its services and presence in Southern California, as consumer demand for affordable gasoline continues to grow. The company appears well-positioned to cater to local residents and members, enhancing its appeal in the competitive fuel marketplace.

Conclusion

The construction of Costco’s first standalone gas station is poised to make a substantial impact on the Mission Viejo community. By catering exclusively to its members and focusing on providing affordable fuel options, Costco aims to establish itself as a key player in the local fuel market, further strengthening its brand and customer loyalty in the region.