With retail gasoline prices surging 57 cents a gallon in a week, more Americans are inclined to go the extra mile to fill up for less. Search interest for “cheap gas” has doubled since last week, according to Google Trends. That is a mixed bag for big box retailers such as Costco , Kroger and Walmart , where it can frequently be found.
In Delaware, for example, BJ’s currently is among the cheapest options, while in California, Walmart is among the cheapest, per GasBuddy data. This is key to these retailers’ broader strategy, especially for those that offer it as sweetener for members. BJ’s notes in its 10-K that it tries to keep gas prices below the market average “as a means of illustrating a favorable price image to existing and prospective members.” In a typical year, gasoline accounts for roughly 10% of revenue for Costco, Kroger, BJ’s and…
