Costco is well known for surprises when it comes to customers shopping experience. Shoppers can be rest assured that they will find essential grocery items at the store, but you also might come out with another great deal on a completely different product.
Members also benefit from other offers like discounts on travel, gift cards sold below face value, and low-price gas stations. This keeps shoppers coming back for more!
Costco extends gas station hours
Costco has recently extended its gas station hours across North America, aiming to provide greater convenience for its members. The new operating hours are:
- Monday to Friday: 6 a.m. to 10 p.m.
- Saturday: 6 a.m. to 8:30 p.m.
- Sunday: 6 a.m. to 7:30 p.m.
These changes may vary by location, particularly in California and Hawaii, where some stations open even earlier. The decision to extend hours was announced by Costco CEO Ron Vachris during the company’s earnings call, stating that the move was made “to make filling up at Costco more convenient for our members.” The company also intends on increasing the value of the membership.
In addition to the extended hours, Costco has also increased the number of fuel pumps and expanded diesel options at selected locations. These improvements have led to increased fuel sales, with the company reporting two of its highest-ever U.S. gallon weeks in April.
Members are finding this change convenient, as they have noted shorter wait times and improved station layouts. Costco is also competitive when it comes to fuel pricing are they are often, 5-25 cents cheaper (per gallon) that other stations and this attracts members.
Memberships Are Booming
The lower gas prices have also led to membership renewals. CFO Gary Millerchip reported “Membership fee income growth was 11.4%, excluding FX, and the recent membership fee increase represented approximately 4.6% of fee income in the quarter”.
And once customers become members, they tend to stay. Costco’s renewal rate in the U.S. and Canada is now above 90%, an almost unheard-of level in retail.
Costco’s other strategic initiatives include the implementation of membership card scanners at the store entrances. These initiatives have also played a role in increasing membership numbers. This specific method is aimed at ensuring only paying members have access to benefits and is estimated to add approximately 4 million new members in North America
Smart Inventory, Smart Timing
Costco is also playing it smart, as the company uses data analytics to predict customer need and manage stock inventory in terms of restocking shelves effectively. This method has played a vital role in its continued success. The company analyses purchasing patterns and seasonal trends and stocks the shelves accordingly with products that align with customer demand.
An example is change of season, between spring to summer. The company stocks up on patio furniture and summer snacks at competitive prices.
A Peek into the Future
Many analysts are optimistic and expect the company to perform well throughout the summer, especially if inflation continues to increase. Consumers want value for money and that is what Costco delivers, this will assist in retaining its customers. Additionally, Costco’s membership-based model, which reported 79.6 million paid memberships which was a 6.8% increase year-over-year and continues to be a cornerstone of its business strategy.
Final Thoughts
Costco’s latest success isn’t just about cheaper gas. It’s about a smart strategy that focuses on value, quality, and customer trust. Costco is proving it can thrive even when the economy gets tough.
If you haven’t visited recently, now might be the time. Just be warned, you’ll probably leave with more than you planned to buy. And that’s exactly how Costco likes it.