Walmart Emulates Costco with Gas Station Expansion

Walmart is making big moves in the fuel station game, with plans to open or revamp more than 450 stations across 34 U.S. states by the end of 2025. To put that in perspective, Costco currently runs over 700 gas stations, according to its latest annual report. When reached for comment, neither Walmart nor Costco responded immediately.

It seems like Walmart is gearing up to compete with Costco’s successful fuel program, which accounted for around 12% of total sales in 2024. While Costco restricts its gas stations to members only, Walmart is keeping its stations open to all, potentially attracting a wider range of customers and boosting profits. Plus, Walmart is sweetening the deal for loyal customers with a 10-cent discount per gallon at Walmart stations and participating Exxon, Mobil, and Murphy stations.

Meanwhile, Costco isn’t sitting still either. The retail giant is looking to increase traffic at its stations by extending operating hours, following a small decrease in gas station sales last year. With Walmart’s strategic push into the fuel market, the company is focusing on convenience to keep up with Costco.

This move from Walmart comes on the heels of reports that Costco is mirroring Walmart’s approach to U.S. tariffs. Costco recently asked its Chinese suppliers to absorb the costs of new tariffs, a move that has suppliers concerned about their already slim profit margins. On the other hand, Walmart has indicated that it would pass tariff costs on to consumers, while Costco may choose to phase out less popular items.

In terms of Diversity, Equity, and Inclusion (DEI) initiatives, Walmart and Costco are taking different paths. While Costco is holding firm to its DEI plans, Walmart has announced plans to scale back its efforts. Time will tell how these decisions play out in the ever-competitive retail landscape.