Walmart is following Costco's lead on gas stations

March 21, 2025 11:56 PM AEDT | By EODHD

Google News:

Walmart is following Costco's lead on gas stations — Image source: Kalkine Media

Recent News

3M Young Scientist Challenge Announces 2025 National Finalists

Marathon Petroleum Recognized for Excellence in Fleet Safety and Perfo...

Fortune Minerals Announces Results of Annual Meeting of Shareholders

Meet Megan McKray: A Champion for Working Parents and Caregivers

Image: Scott Olson (Getty Images) Walmart (WMT) is taking a page out of Costco’s (COST) playbook by ramping up its fuel station operations. The retail giant plans to open or remodel over 450 fuel and convenience stations across 34 U.S. states by the end of 2025. Costco, by comparison, operates more than 700 gas stations, according to its latest annual report. Walmart and Costco did not immediately respond to Quartz’s request for comment.

This move could be one way Walmart aims to compete with Costco’s popular fuel program, which made up about 12% of total sales in 2024. While Costco keeps its gas stations exclusive to members, Walmart’s stations are open to everyone, potentially providing a larger customer base and a profit boost. In addition, Walmart is offering a new perk for loyalty members: a 10-cent discount per gallon at Walmart stations, as well as at participating Exxon (XOM), Mobil, and Murphy (MUSA) stations. Meanwhile, Costco has been expanding its fuel business. Recently, the warehouse only retailer said it would extend hours at its stations to boost usage, as it tries to recover from a slight dip in gas station sales last year.

With Walmart’s aggressive push into the fuel space, the company is banking on convenience to help it compete with Costco. This expansion comes after Costco reportedly followed Walmart’s lead on U.S. tariffs. Earlier this week, Costco asked its Chinese suppliers to absorb the cost of new tariffs – similar to Walmart’s move. This has sparked pushback from suppliers, who claim the added burden could further squeeze already razor thin margins.

Previously, Walmart has said it would pass tariff costs onto consumers, while Costco has stated it would phase out items in lieu of more popular items. On the other hand, Walmart and Costco diverge when it comes to Diversity, Equity, and Inclusion (DEI) initiatives. Costco is sticking firmly to its DEI plans, while Walmart has said it plans to scale back its efforts. For the latest news, Facebook, Twitter and Instagram. View Comments

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.