The Hustle Daily Show Walmart and Costco are getting into the gas business
5 snips
May 28, 2025 Big box retailers are diving into the gas business, challenging the rise of electric vehicles. Walmart and Costco are expanding their gas offerings to boost profits amidst changing consumer habits. On a different note, ice cream and cookies are vying for dessert dominance, sparking a sweet competition. Additionally, Southwest Airlines stirs controversy by enforcing checked bag fees, raising eyebrows among loyal passengers. Meanwhile, concerns grow about the rapid pace of AI development as it shapes our future.
AI Snips
Chapters
Transcript
Episode notes
Big Retailers Bet on Gasoline
- Walmart, Costco, and Sam's Club are expanding gas stations despite the EV revolution. - Gasoline remains profitable as EV adoption grows slower than expected.
Costco Gas Sales Drive Significant Revenue
- Gas sales accounted for 12% of Costco's 2024 revenue, highlighting its importance. - Walmart's open-access model gives it an edge over member-only gas stations like Costco's.
Use Gas as Loss Leader Strategy
- Walmart can use gasoline as a loss leader by pricing it lower than competitors. - Lower gas prices could drive customers into Walmart stores, boosting overall sales.