Walmart, Costco and Dollar General are investing in the gasoline world. These are very popular companies in the United States, but now they are stepping into the gas stations by catching the customers’ attention with coupons and special discounts.
The price of gasoline is increasing, so the companies are taking advantage of this because the competence is higher in this field and Walmart, Costco and Dollar General know what they are doing. Let’s explain this in detail.
Walmart, Costco, Dollar General and… gas stations?
Yes, this is a reality. These companies are using the customers’ need to refuel their cars to have one more place for business. They use this gasoline need to increase the number of customers as they are coming up with new market strategies, such as discounts and a coupon that includes a purchase on their stores plus gasoline. This is very beneficial for many drivers that may see a good option for saving.
No investment in electric cars
You may think Walmart, Costco and Dollar General are making a huge mistake because they are investing in a business that has their days numbered. Let me tell you this is not entirely true. Electric vehicles are still too expensive, so not many people own them and, as a consequence, regular gasoline engine cars are the ones that most citizens drive.
Apart from being too expensive, electric cars mean building special recharging stations and in some places of the U.S.A. this is not possible yet due to the lack of infrastructure for electric cars.
Basically, what Walmart, Costco and Dollar General are doing is to make the most of what they have now and not wait for what might be the future project to invest.
Walmart’s strategy
Walmart has built 450 gas stations in 34 states of America and they want to keep building more. This retail store gives customers the option of becoming a member of Walmart with the Walmart+ card. The benefit you will have is saving up to 10 cents per gallon of gasoline, and you will be paying $12.95 per month for your membership.
They have used a good strategy because they have built most of their gas stations where they have Walmart stores, so you can do 2 things in 1 place. That’s good thinking!
What is Costco doing?
This company is an expert at selling gasoline and it has been very successful, about 12% of their earning comes from this service.
Costco’s strategy is based on being competitive with other gas stations prices. So, what they do is sell good quality gasoline cheaper than others. However, this is only available for members, so, as it happens with Walmart, you have to pay for the Costco membership that costs $60.
Another important aspect that shows the company is listening to customers needs, is the fact that their gas stations are open until 10PM which is so beneficial for workers who leave late.
Last, but not least… Dollar General
This company is the one trying a new strategy consisting in opening gas stations in rural areas of the south of the U.S.A. This is because these places a far away from gas stations and stores, so the company wants to reach to these isolated areas with their stores and also gas stations.
These companies are following the phrase ‘reinventing yourself or becoming redundant’ by adapting their stores to other business activities. Some people might think once electric cars become more affordable, these gas stations will be for nothing. Actually, they have the opportunity to adapt again and add recharging stations too. As you can see there’s a place for everything.