One of America’s leading supermarket chains, Walmart, is making another move to increase its competition with Costco Wholesale. The big box retailer has big plans to revamp its gas station and convenience store locations during the course of the year , in addition to adding more branches across the country for Walmart lovers to benefit from.
This move is almost certainly a bid by the company to keep up with Costco Gas Stations who claims to offer gas pricing that is 20 cents cheaper per gallon than that of local competitors and recently announced it will be extending its operating hours to better accommodate the schedules of its customers.
Walmart is shifting gears to expand its gas station and convenience store offerings
Just yesterday, on Wednesday, March 19, the grocery giant announced its plans to remodel or open more than forty-five gas stations around the country. If all goes according to plan, by the end of the year, the retailer will have well over 450 Walmart Fuel and Convenience Stores in operation spanning thirty-four states — as per an email sent to PYMNTS.
Unlike the gas stations run by retail peer Costco, Walmart Fuel and Convenience Stores are open to all customers regardless of whether they are signed up for a Walmart+ membership or not. In addition to offering competitive pricing on fuel, the snacks and beverages offered inside the convenience store also match the price point of that carried at Walmart supermarkets. Additionally, Walmart+ members are able to save up to 10 cents per gallon when filling up at these stations.
“By adding dozens of fuel and convenience stations this year, we are bringing even more value to our customers,” Dave DeSerio, vice president of fuel and convenience for Walmart U.S., explained in a release. “Customers shop Walmart for our everyday low prices and convenience offerings, and fuel stations are another example of us responding to our customer and member needs.”
According to data collected by NACS, a trade association for the fuel and convenience retail industry, the big box giant opened its 400th fuel station in Palm Springs, California just a few months ago in December. In the report, NACS said, “The fuel stations offer customers the convenience of filling up their tanks where they shop.”
Perks of being a Walmart+ member
Walmart+ is a membership service offered by the retailer whereby enrolled customers can benefit from exclusive deals and discounts. A membership costs $98 annually, a fee that is significantly higher than that of main competitor Costco who charges $65 annually for a membership.
Despite being on the pricier side, this membership does come with its fair shar of perks, particularly fuel related ones. According to the membership program web page, members can enjoy a discount of up to 10 cents per gallon when filling up at any Walmart Gas Station. This discount also applies to Walmart+ members who fill up at Exxon, Mobil and Murphy. In addition to this, membership holders can also enjoy member pricing when fueling up at Sam’s Club fuel centers.
In April 2022, the company shared its decision to increase the fuel discount to 10 cents per gallon, along with expanding the savings eligibility to both Exxon and Mobil fuel stations.
In the same April 2022 press release, Chris Cracchiolo, who had been senior vice president and general manager of Walmart+ at the time, claimed that “the company had found that 91% of its customers were aware of fuel prices and that nearly half of them had changed their behaviors in response to higher fuel prices.”
“More access to a bigger discount will make a difference for our customers,” Cracchiolo explained. “We want Walmart+ to help our customers save time and money, not only when they’re shopping with us, but throughout their day.”