Costco has always known how to keep its customers loyal thanks to a formula that combines stability with surprise. Its members trust they'll find the basic products they need, but they also enjoy the excitement of discovering unexpected items on every visit. This mix is what makes every trip to Costco a different and appealing experience.
Recently, the chain took an important step that its users have enthusiastically welcomed in the United States. One of its lesser-known but highly valued services, the gas stations, has extended their hours, boosting sales and satisfaction. This change has notably improved the experience at the service stations over the past few months.
The bet on extending gas station hours
Although not all Costco stores have a gas station, those that do follow a very particular model. They don't accept cash, and traffic always flows in a single direction to make access and exit easier. In addition, the hoses at the pumps are long enough to serve vehicles from both sides, a detail designed for customer convenience.
This year, Costco quietly decided to extend the operating hours of its service stations. According to CEO Ron Vachris, this measure had an immediate and very positive impact, he shared during the third quarter earnings presentation. The combination of longer hours, new gas stations, and lower fuel prices led the company to record-breaking weeks in gasoline sales in the United States.
The success is reflected in more gallons sold, although total revenue dropped due to falling prices compared to last year. For Costco, the move was a clear sign that improving accessibility and convenience for its customers is key to keeping its leadership.
Membership boost thanks to competitive prices
Low gasoline prices not only benefit members at the pump, but they've also been an important driver for membership growth at Costco. The company has continued to show solid numbers in renewals and new sign-ups, even with some ups and downs, reports The Street.
In the third quarter, membership fee revenue reached $1.24 billion, an increase of 10.4% compared to the previous year. Although the renewal rate showed a slight slowdown, it kept high levels at 92.7% in the United States and Canada, and 90.2% globally. This small drop is attributed to special promotions and the growth of digital memberships, which tend to renew less often, although they add young and new users.
For the company, keeping a growing and active base of members is essential, and the changes at its service stations have decisively contributed to that major goal. With this extension in hours and customer service, Costco reaffirms its commitment to always offer more value, keeping the trust of its members and attracting new shoppers.