Costco ran out of room for gas pumps, so it’s building entire gas stations without a store

How popular are Costco’s gas pumps? The chain had to open its own standalone gas station, apart from the store, just to accommodate customer demand. The retailer is now pumping gas at a station in Southern California, with a second station planned for Honolulu, the Wall Street Journal reports. Both sit a mile or two from the nearest warehouse.

“They’re really intended to either alleviate some of the capacity constraints in the gas station that exists at the warehouse today or we just can’t get a gas station on the same premises,” said Costco CFO Gary Millerchip. The stations will keep Costco’s signature discounted pricing, as fuel prices continue to rise.

CEO Ron Vachris told investors the five weeks ending mid-May were the highest gas-sales weeks in company history, pulling in members using Costco’s pumps for the first time. Those first-time fuel customers tend to spend more overall, he added.

Costco has had another retail win lately, too. Sales for a retro 1980’s Esprit fleece crewneck completely sold out over the weekend. Whether it’s filling up the tank or the closet, Costco members are getting their fill this month.

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