Costco’s Gas Stations Are Making a Huge Change — Here’s What Customers Need To Know
Costco gas stations are amongst the most popular due to its affordable prices.
Costco offers a variety of popular ancillary services for its members, including a gas station with competitive prices. Now, however, the warehouse club is looking to make these services even more enticing.
According to Men’s Journal, Costco has extended its members-only gas station hours until 10 p.m. nationwide, and certain locations are also opening earlier in the day.
“Generally, our stations are now staying open an hour later than they did previously, with some opening earlier as well,” CEO Rob Vachris said during a March earnings call. The longer operating hours, coupled with attractive fuel prices, aim to draw more customers to the warehouse club’s gas stations.
Retail finance expert Joe Camberato told the outlet, “Costco’s move isn’t just about fuel. It’s about reinforcing membership value and building long-term loyalty.”
Costco’s gas stations play a major role in its overall profitability, contributing around 12% of the retailer’s total sales in 2024, according to Men’s Journal. Unlike rivals Walmart and Sam’s Club, which welcome all customers at their pumps, Costco’s model of limiting fuel access to members has become a strong draw for new and loyal shoppers alike.
Embracing Digital Checkout Technology
Per a separate report from Men’s Journal, Vachris hinted at new technology that will speed up and simplify member checkout during the company’s third-quarter earnings call.
“We found that digital really enhances the speed of checkout, and so we are really working hard on the digital membership card usage,” Vachris said, adding that the scan-and-go system adopted by Costco is similar to the system adopted by Sam’s Club.
Costco’s Same-Day website provides an overview of what’s to come, even though specifics are still limited. Customers can scan products with their phones while they buy, thanks to a function dubbed “Scan & Pay,” which is accessible at a few locations thanks to its collaboration with Instacart. Then, without the need for a cashier, the app creates a QR code that is scanned at the exit to verify purchases.
Sam’s Club has already made a significant investment in this kind of technology, eliminating conventional checkout lanes at stores like the one in Grapevine, Texas. In recent polls, the Walmart-owned retailer has surpassed the warehouse club in customer satisfaction ratings thanks to its simplified shopping experience.
Costco Recently Partnered With Affirm
According to a recent shareholder letter, Costco members who are approved can select monthly Affirm payment plans for their purchases.
Along with Klarna Group Plc and products from PayPal Holdings Inc. and Block Inc., Affirm is a prominent buy-now, pay-later company in the United States. Due to rising interest rates and persistently high inflation, consumers are choosing pay-over-time options over credit cards, making the sector more competitive.
The third-biggest retailer in the U.S., Costco, is not currently a Klarna partner.
Klarna and Affirm fought for collaborations with stores in Europe and the U.S. To raise its profile, Klarna has enlisted Lady Gaga and Snoop Dogg as brand ambassadors. The largest retailer in the world, Walmart, used to work with Affirm, but it recently partnered with Klarna, which just inked a deal with OnePay, a fintech company supported by Walmart.
