Costco makes a U-turn in the U.S.: the decision won't please its members

Costco is famous for offering low prices and exclusive benefits, although customers must pay a fee to access them first. That model has worked for years, attracting millions of customers who value both the savings and the shopping experience. However, not all decisions please their members equally.

The American chain has surprised everyone with a move that breaks with its traditional formula. Instead of opening more stores with varied selections and food areas, it has decided to build its first standalone service station. The new project has caused excitement within the company, although customers aren't receiving it with the same enthusiasm.

A gas station without a store or fast food

The first standalone pump from Costco is being built in Mission Viejo, California. Unlike the current service stations, this one won't be attached to a warehouse from the chain, nor will it have food stands. It will open only for its members, as is the case with all Costco stations, and it's expected to begin operating next year, according to The Street.

This decision comes after the company extended the hours of its gas stations, after listening to customer complaints. Now, in most locations, customers can refuel from 6 a.m. to 10 p.m. on weekdays. The goal was to make the service more accessible and, according to the company, it has worked: sales related to fuel have increased.

In addition to the hours, another attraction of refueling at Costco is the type of fuel. The chain offers "TOP TIER" quality gasoline, designed to improve engine performance and extend its lifespan. Along with a lower price per gallon (per liter), this has made many members see refueling as one of the benefits of their membership.

But the experience may change... for the worse

However, this new gas station could bring unexpected problems. Many members are used to filling up their tanks before or after shopping. Going just to refuel at a station without a store or food, and on top of that having to wait in line, may be much less appealing.

Costco's value isn't just in the savings. It's also in the experience of going for toilet paper and leaving with a television, or staying to eat one of its famous hot dogs for just $1.50. Without those incentives, a stop to refuel may seem more like a waste of time than a savings opportunity.

Costco charges $65 per year for its basic membership and $130 for the premium one, a key source of income to keep prices low. Thanks to that model, it can afford reduced margins and even losses on some products. Separating the gas service from the rest could weaken a formula that many consider an essential part of its success.