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Walmart's new growth catalyst: convenience stores & gas stations
Inside the retail giant's aggressive fuel center expansion and what it means for convenience store competitors
Dissecting the Markets
May 03, 2025
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When we think of Walmart $WMT ( ▼ 1.01% ) , we typically think of big box retail stores that either say “Walmart” or “Sam’s Club”. Walmart has done a great job with it and has made it synergize well with e-commerce. Now, Walmart is looking to expand into the convenience store space.
Walmart’s presence in convenience stores isn’t new. Back then, all gas stations and convenience stores associated with Walmart were operated by $MUSA ( ▲ 0.08% ) . That resulted in over a thousand Murphy convenience stores built near Walmart parking lots. Then in 2016, $MUR ( ▲ 0.37% ) decided to grow its own convenience store empire on its own.
Since separating its growth from Walmart, Murphy USA has grown immensely, and shareholders have been handsomely rewarded in the process. Walmart has also been busy opening its own convenience stores and gas stations since separating with Murphy USA. But this growth that Murphy USA had looks to be threatened as Walmart opened its 400th fuel center.
$MUR ( ▲ 0.37% ) share performance since separating from $WMT ( ▼ 1.01% )
Walmart has a lot more financial backing than few, if any, other convenience retailers have. By the time it opens its 450th convenience store and fuel center, it will be in the top 20 convenience store chains in the US by store count.
No one knows how widespread and fast Walmart will grow its convenience store chain. But what we do know is they’re essentially miniature versions of its supercenters that happen to also sell gasoline. The prices found there are the same as the prices found in Walmart’s big box stores.
The convenience stores Walmart has, the gas stations that come with them, are ways Walmart encourages its customers to subscribe to Walmart+. Not only do these stores help boost delivery speeds to customers, but they also provide discounts on gasoline. Even with the convenience and low prices of Walmart’s convenience stores, management admits they struggle with customer loyalty. Convenience stores that have been around for a longer time get more consistent foot traffic, while new convenience stores struggle to gain foot traffic.
At the end of the day, Walmart is hoping their lower prices is what will bring customers to their convenience stores. Even if it means sacrificing the high-margin opportunity that traditional convenience stores offer.
The exterior of a new Walmart convenience store on Wednesday, February 8, 2017 on FM 1187 in Crowley, Texas. (Ashley Landis/The Dallas Morning News)(Staff Photographer)