Kevin Williams
Updated 5 min read
In This Article:
Major retailers like Costco (COST), Sam’s Club, and Walmart (WMT) are stepping on the gas even as the age of electric vehicles creeps closer. These big box stores — traditionally not a place for pumps, unless they are the kind sold in the shoe aisle — are turning into gas giants, expanding their hours, adding car capacity, and building more infrastructure
None of this is surprising, say those who watch the fuel business.
“The world still runs on gas, not EVs. Everyone talks like the switch to EV is happening overnight, but big industry shifts like this take decades,” said Joe Camberato, CEO of NationalBusinessCapital.com. Camberato noted that the EV infrastructure just isn’t there yet — not enough charging stations or power supply.
“So in the meantime, there’s still plenty of money to be made in the fuel business. Change is coming, but nowhere near as fast as people predicted,” he said.
As testament to that, Walmart is opening more than 45 new gas stations across the United States this year.
“With the openings this year, we will have more than 450 locations across 34 states,” said Amanda Cantu, a Walmart spokesperson. “Walmart fuel and convenience stations operate at stores without Murphy USA (MUSA) stations,”
“Our one-stop shops offer low prices at the pumps, and Walmart+ members save up to 10 cents per gallonwith their membership,” Cantu said, adding that Walmart fuel and convenience stations also provide a wide range of grab-and-go items.
Costco and Dollar General (DG) did not return requests for comment, but earlier this year Costco announced that they would be expanding the hours of their members-only fuel centers, with most to stay open until 10 p.m., rather than 9 p.m., and still well beyond the typical 6 p.m. closing time of the store.
“Generally, our stations are now staying open an hour later than they did previously, with some opening earlier as well,” said Costco CEO Rob Vachris in a March earnings call with investors.
Dollar General’s move into fuel has been more halting, starting with a pilot location in Alabama that has now expanded to more than 40 stores, primarily in the South.
But according to Placer.ai’s foot traffic estimates, there has been an increase in the number of retailers visited for non-discretionary goods and service, increasing competition among chains.
“Retailers are looking for a way to incentivize consumers to forgo competitors, and adding gas offerings or other services is certainly a lever that chains can utilize,” according to Elizabeth Lafontaine, director of research at analytics firm, Placer.ai.
