Costco to Open First Standalone Gas Station in Mission Viejo

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Rendering of the upcoming Costco standalone gas station in Mission Viejo.

News Summary

Costco plans to open its first standalone gas station in Mission Viejo, featuring 40 fuel pumps, making it the largest in the retailer’s history. Construction will start in fall 2024, with an opening expected in spring 2026. Exclusively for Costco members, the gas station aims to provide competitive fuel prices amid rising gas costs in California. The new facility will be located in a busy shopping area, enhancing the consumer experience while addressing the high demand for cost-effective fuel options among local drivers.

Mission Viejo, California – Costco is set to open its first standalone gas station in Mission Viejo, featuring 40 fuel pumps, which will make it the largest of its kind for the retailer. The gas station is slated to be located at 25732 El Paseo within the Mission Viejo Freeway Center, a site currently occupied by a shut-down Bed Bath & Beyond store that will be demolished to facilitate construction.

Construction is anticipated to commence in the fall of 2024, with the projected opening date falling in spring 2026. This new gas station will cater exclusively to Costco members, differentiating itself from the traditional convenience gas stations which often include retail spaces.

Current fuel prices in California are averaging around $4.65 per gallon, and experts believe the competitive pricing offered by Costco may attract significant foot traffic to the new location, especially considering the high demand for low-cost fuel options among consumers. Mission Viejo city officials have confirmed and approved the plans for the gas station, which is situated roughly two miles from an existing Costco warehouse that sells fuel.

The new gas station will be strategically placed within a bustling shopping area that already includes major retailers such as Krispy Kreme, Petco, and Best Buy, potentially enhancing the overall shopper experience. The construction aligns with Costco’s established strategy to offer its members affordable gasoline, which has proven to be an appealing perk that drives customer loyalty.

City spokesperson Robert Schick indicated that grading and building permits for the project are currently under review, signaling progress for the upcoming venture. The establishment of this standalone gas station marks a departure from the conventional model of gas stations that typically incorporate a retail component. It reflects Costco’s intention to better serve a particular market need in California, where the ratio of drivers to gas stations is notably high.

Moreover, analysts have observed that discounts on fuel are a substantial motivator for consumers, particularly in big box retail environments such as Costco. By opening this gas-only location, the company aims to not only respond to the demand for more gas stations in the area but also to enhance service availability for gasoline buyers among its membership. Overall, the initiative demonstrates Costco’s commitment to providing value through lower gasoline prices and a focused service approach for its members.

As construction plans progress and specifications materialize, the gas station is anticipated to become a significant addition to the Mission Viejo area, merging Costco’s operational model with the needs of local consumers looking for cost-effective fuel options.