The Friday Checkout is a weekly column providing more insight on the news, rounding up the announcements you may have missed and sharing what’s to come.
For years, club retailers Costco, Sam’s Club and BJ’s have relied on gas stations that sit adjacent to their stores to help drive traffic to their aisles. The vast majority of their locations feature fuel — Costco operates more than 700 gas stations while BJ’s operates close to 200 — and that fuel is usually really cheap.
Walmart, which owns Sam’s Club, sees an opportunity to do more with this model. As sister publication C-Store Dive recently reported, after a decade of quietly building gas stations next to its stores, the company has decided to hit the accelerator, with plans to open at least 45 stations in the U.S. this year, bringing its total to more than 450.
That number represents a fraction of Walmart’s more than 4,000 U.S. locations. But as Dave DeSerio, Walmart’s vice president of fuel and convenience, told C-Store Dive, Walmart has spent the years since its exclusive deal with Murphy USA ended patiently learning the c-store business and is now ready to move. “Nothing is off limits” when it comes to growth at this point, he said.
C-stores could play a vital role for Walmart. While Costco’s fuel centers just offer fuel, Walmart’s convenience stores also offer fill-ups on candy, snacks, beverages and coffee — and all at the same prices offered inside the nearby big box location. These express outlets may be better equipped to meet fill-in and impulse-driven shops than Walmart’s hulking supercenters.
Walmart can also use its growing c-store footprint to test out new products and further flex its Walmart+ membership program. Walmart+ currently offers a fueling discount, and it’s not hard to imagine members getting additional loyalty perks like free coffee, bonus fuel rewards and more. There are also opportunities to tie in Walmart’s booming e-commerce business, like promoting fueling to customers who collect their pickup orders.
Make no mistake, the c-store business is tough for retailers. Just ask Schnuck Markets and Giant Eagle, both of which sold off their convenience businesses in recent years. And fuel margins have been falling for c-store retailers. But Walmart is in a class by itself. It has the resources to support a cutting-edge c-store business and make it a key addition to its fast-evolving retail ecosystem.
In case you missed it
Shoppers lean on buy now, pay later for groceries
A quarter of BNPL users are using the loans to buy groceries — a 14% increase compared to last year, according to a newly released Lending Tree report. Generation Z is the most likely age group to rely on the payment option. One-third of surveyed Gen Zers said they’ve used BNPL for groceries, making it the fourth most common BNPL purchase for that generation.
The Fresh Market hits store expansion milestone
The specialty grocer opened the doors of its 170th and 171st locations on Wednesday. Both stores are on the East Coast, with one in Jensen Beach, Florida, and the other in Wethersfield, Connecticut, per the press release.
More Instacart smart carts will roll into Schnucks
The grocery e-commerce and technology provider is bringing additional Caper Carts to the Midwest grocer. The rollout brings the smart carts to five new stores as well as introduces a lower tray to the carts to help customers more easily shop for bulky items, the announcement said.
Schnucks, which has partnered with Instacart since 2017, first introduced Caper Carts to its aisles in 2024.
Impulse find
Sprouts hosted a new goated experience
How is Sprouts Farmers Market raising awareness about their Fairtrade bananas? Goat yoga, of course!
Two of the specialty grocer’s Arizona locations last weekend hosted goat yoga — which is exactly what it sounds like — in partnership with Equifruit, an importer of Fairtrade bananas, according to an emailed press release.
“Equifruit Fairtrade bananas are the G.O.A.T of the produce aisle (Greatest Of All Time)!” Jennie Coleman, president and co-owner of Equifruit, said in a statement.
The event also marked the launch of Equifruit Fairtrade bananas into the Arizona market.
The event was an unconventional way to raise awareness for ethical sourcing, to say the least. But hey, whatever floats your goat, Sprouts.
