Over the years, Costco Wholesale Corporation (COST) has been viewed as one of the safest retail plays during periods of economic stress, drawing loyal consumers with its bulk discounts, membership model, and reputation for value. But in today’s inflationary environment, another factor has quietly become a powerful traffic driver for the warehouse giant: gasoline. As fuel prices remain elevated, Costco’s low-priced gas stations have helped attract more shoppers to its warehouses, boosting both foot traffic and high-margin discretionary spending.
Fuel prices are surging across the United States, with the national average climbing above $4.50 per gallon, while some states are seeing prices top $6, and Costco is generally $0.10 to $0.25 cheaper per gallon than local and national averages.
