Walmart is taking significant strides to expand its reach in the retail world, this time in the gas station and convenience store sector.
This year, the company plans to open 40 to 45 new fuel station convenience stores near its existing stores, more than doubling last year’s efforts. This push is set to continue at the same pace for the next five years.
Growth and Expansion
By the end of this year, Walmart aims to have around 460 fuel station locations across the country, up from just a handful when it opened its first station in 2014.
This expansion isn’t just about building new stores; Walmart is also making efforts to enlarge and redesign existing stores to attract more customers.
More Than Just Fuel
The new stations are designed not only to provide fuel but to encourage impulse buying, with items like snacks, drinks, and even lottery tickets available for purchase.
Experts, such as retail consultant Scott Benedict, suggest that these fuel stations will help drive traffic to Walmart’s main stores, making it easier for customers to do all their shopping in one stop.
Additionally, Walmart has integrated its grocery pickup services with fuel trips to add extra convenience for its customers.
Price Consistency
Despite the expansion, Walmart assures that prices will remain consistent.
Snacks and drinks sold at these new fuel stations will be priced the same as they are in the main stores.
The idea is to provide value and convenience without increasing costs for shoppers.
Walmart’s Journey in Gas Stations
Walmart’s involvement with gas stations dates back to the 1990s, initially through a partnership with Murphy USA.
Over time, the company tested several convenience store concepts, with the first official location opening in Arkansas in 2014.
Since then, Walmart has expanded its reach to other states, including Texas and Colorado, where it began offering online order pickups alongside fuel.
A Nationwide Footprint
By the end of this year, Walmart’s fuel and convenience stores will be spread across 34 states, with the company continuing to invest in its nationwide store presence.
Dave DeSerio, Walmart’s VP of fuel and convenience, expressed that this expansion is all about providing even more value to their customers.
Loyalty Perks for Walmart+ Members
For those who are part of Walmart’s loyalty program, Walmart+ members can enjoy a $0.10 per gallon discount at any of the company’s fuel stations.
This perk makes the new fuel stations even more appealing to shoppers already invested in Walmart’s ecosystem.
Competing with Other Retailers
Walmart isn’t the only retailer with a growing gas station presence.
Competitors like Kroger and Costco have also made moves into this space.
Kroger operates over 1,000 gas stations in 16 states, while Costco is increasing its number of stations by 60 and extending their hours of operation.
These moves signal that the competition for gas station dominance in retail is heating up.
The Future of Fuel Stations
Costco’s CEO, Ron Vachris, highlighted the company’s strategy of extending station hours, aiming to make fueling more convenient for their members.
Similarly, Walmart’s growth strategy for fuel stations and convenience stores is aggressive, with DeSerio emphasizing the importance of a steady, careful approach as the company learns and grows.
In the coming years, expect to see more fuel stations popping up at Walmart locations.
The company seems committed to making gas and convenience shopping a seamless part of the Walmart experience.
What’s Next for Walmart?
With this expanded reach, Walmart’s move into the gas station and convenience store market seems poised to continue evolving.
Additionally, the company has been in the news recently with the introduction of AI-powered checkout systems at Sam’s Club, its warehouse-based competitor to Costco.
As Walmart continues to innovate and grow, all eyes will be on how these new ventures influence the company’s broader retail strategy.