Costco has a long presence in California, including Southern California, where the first Price Club opened in 1976. The company has used the state’s scale to pilot new ideas, including a housing model in south Los Angeles. In June, Costco is expected to open its first stand-alone gas station not attached to a retail warehouse in Mission Viejo, Orange County. The site will be located off Interstate 5 and will include a large gas canopy and three large storage tanks, with capacity for many vehicles at once. Costco’s lower-priced gas can function as a membership driver, and stand-alone locations can reach communities that cannot support a full warehouse footprint.
"In June, Costco is expected to debut its first gas station that's not attached to any current or forthcoming retail warehouse. The project, landing right off Interstate 5 in Orange County's Mission Viejo, is no small feat, either. With a more than 17,000-square-foot gas canopy and a trio of 40,000-gallon storage tanks, the membership-only place is planned to be seriously high-capacity when it opens, and should undoubtedly give other area gas stations a run for their money."
"Costco's new stand-alone gas station is a big move for the ever-popular brand, for a variety of reasons. First, Costco's less-expensive gas has frequently been seen as something close to a loss leader for the company. Selling cheaper oil - especially in a global crisis - makes more folks want to sign up for a membership, which itself is incredibly valuable for the business. In 2023, Costco earned $4.5 billion just off membership fee revenue."
"What's more, Costco's new gas-only side business is good for brand recognition. With a smaller (but still giant) footprint, Costco gas stations can go into locations and communities that otherwise could or would not allow a full-scale warehouse, thus driving even more people toward the brand."
"The closest actual Costco warehouse location to the Mission Viejo site, which also comes with its own gas station, is 2.5 miles away in nearby Laguna Niguel. Costco's new stand-alone gas station is a big move for the ever-popular brand, for a variety of reasons."
Read at SFGATE
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