Photo: ELIJAH NOUVELAGE / AFP / Getty Images
The gasoline prices are skyrocketing, however this could favor retailers like Costco , BJ’s Wholesale Club and Sam’s Club .
The national average price of gasoline shot up on Friday to $ 3. 41 dollars per gallon , according to AAA, a 61% more than the average price at the same time last year .
The increase in price has pushed more buyers to rely on these chains for fill your vehicle’s tanks , according to several retail analysts. The Biden government has called for to investigate whether oil and gas companies acted illegally to drive up fuel prices .
Gasoline prices in stores can be up to 30 pennies cheaper than at traditional gas stations , because the chains offer their members coupons to use in their stores when they load fuel.
Warehouse gasoline sales are an important part of your business as you attract customers by offering more services.
On Costco , for example, is usually 20 cents per gallon below market average , while BJs sometimes display up to 10 cents below the national average price .
Businesses win when gasoline prices skyrocket since most of the time your customers, before or after filling the fuel tank, stock up on a variety of products ranging from food, electronics and even clothing.
What gas stations represent
Their gas stations give retail stores an edge that many competitors cannot match. The service stations represent around the 10 %, that is, close to $ 20, 000 millions of dollars annually, of the total sales of Costco and 9% of those of BJ’s. In his case, Walmart, owner of Sam’s Club, has not disclosed how much of its sales comes from the sale of gasoline.
Although gasoline is a low margin business, retailers can make money selling large volumes of gasoline, even charging much less than independent gas stations .
Although wholesalers are able to make a profit on gasoline, they don’t earn much: Costco, for example, reported that gasoline has a margin of lower profit than the rest of your business . Rising gas prices often help Costco’s sales, but hurt its profits.
“When there are inflationary pressures and prices go up, people look to save on gas,” said Richard Galanti, Costco’s chief financial officer, in an interview with CNN.
For each 100 people who go to Costco to fill the fuel tank , more than half will buy within the company.
Walmart gas stations
During the last quarter ending on 30 In October gasoline sales at BJ’s Wholesale Club increased by 20% compared to the same period of the previous year.
BJ’s is increasing its market share in the gasoline sector “by leaps and bounds,” CEO Robert Eddy said in a call with analysts Thursday.
When gas prices exceed $ 3 a gallon, “members love us” and transfer their gas spending to the club.
Gas discounts are a tool that Walmart uses to encourage customers to subscribe to Walmart + memberships, which also offer free shipping and discounts on prescriptions.
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