Big box stores like Walmart, Costco and Sam’s Club have been aggressively entering the fuel market, “expanding their hours, adding car capacity and building more infrastructure,” reported outlet Quartz.
NACS Daily reported in March that Walmart will open or remodel more than 45 fuel stations across the United States this year.
Walmart currently operates more than 400 fuel and convenience stations nationwide, and the new locations will bring the retailer’s store count to more than 450 locations across 34 states.
Meanwhile Costco announced earlier this year that it would expand the hours of its members-only fuel centers from 9 p.m. to 10 p.m., past the typical 6 p.m. closing time of the store, wrote Quartz.
“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.
“Walmart’s move into fuel signals an effort to rival Costco’s successful fuel business, roughly 12% of its total sales in 2024. But, Walmart’s gas stations will be open to any customer, unlike Costco and Sam’s Club which restricts access to members. This could broaden Walmart’s reach and boost revenue,” Usha Haley, an expert on international strategy and currently the W. Frank Barton Distinguished Chair in International Business at Wichita State University, said.
Dollar General is also ramping up its presence in the fuel industry. According to the outlet, 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.”
Dollar General opened its first fuel location back in 2013 according to its site. “Dollar General continues to innovate to provide convenience and value for our customers,” said Rick Dreiling, chairman and CEO at the time. “This project to test a fuel offering is consistent with our strategy of continually looking for new and better ways to meet our customers’ needs for value and convenience and enhancing our position as America’s general store.”
Dollar General said in 2013 that the pilot project was part of an agreement with Mansfield Oil.