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Yahoo
3 days ago
- Automotive
- Yahoo
Walmart Expands Into Fuel—And It's More Than Just Gas
Walmart is rolling into the fuel business in a big way, and the move could reshape its rivalry with Costco. With plans to open more than 45 new gas stations across the U.S. this year, Walmart is flexing its muscles in a space traditionally dominated by warehouse clubs like Costco and Sam's Club. 'As EVs remain a long-term play, gas is still king,' said Joe Camberato, CEO of 'The switch to electric vehicles isn't happening overnight, and retailers know there's money to be made from traditional fuel for years to come.' Walmart's new gas stations, set to operate at stores without Murphy USA pumps, will boost its total fuel footprint to over 450 locations across 34 states, Quartz reported. The company is offering low prices at the pump and up to 10 cents per gallon off for Walmart+ members. It's a classic one-stop-shop strategy aimed at bolstering customer loyalty and driving foot traffic. 'Walmart's fuel expansion signals an effort to rival Costco's highly successful gas business, which made up around 12% of its total sales in 2024,' said Usha Haley, an international business expert at Wichita State University. The key difference? Walmart's stations are open to everyone, unlike Costco's members-only model. But Costco isn't standing still. Earlier this year, CEO Rob Vachris announced the company would extend hours at its members-only fuel centers, keeping most locations open until 10 p.m. It's a move designed to deepen loyalty and capture more sales as EV adoption remains watchers say the battle isn't just about gas. With inflation, tariffs, and supply chain disruptions hitting margins, retailers like Walmart and Costco are leaning into fuel as a reliable revenue stream. And with Walmart openly acknowledging that tariffs on Chinese goods could impact prices, low-priced gas is one way to keep customers coming back. 'The rise of EVs will eventually change the game,' said Manish Choudhary of SymphonyAI. 'But for now, these retailers are competing for a bigger slice of the fuel pie, and Walmart's latest move is a clear signal of intent.' Walmart Expands Into Fuel—And It's More Than Just Gas first appeared on Men's Journal on May 27, 2025
Yahoo
5 days ago
- Automotive
- Yahoo
Walmart, Costco, and even Dollar General are getting into the gas station business
Major retailers like Costco (COST), Sam's Club, and Walmart (WMT) are stepping on the gas even as the age of electric vehicles creeps closer. These big box stores — traditionally not a place for pumps, unless they are the kind sold in the shoe aisle — are turning into gas giants, expanding their hours, adding car capacity, and building more infrastructure None of this is surprising, say those who watch the fuel business. 'The world still runs on gas, not EVs. Everyone talks like the switch to EV is happening overnight, but big industry shifts like this take decades,' said Joe Camberato, CEO of Camberato noted that the EV infrastructure just isn't there yet — not enough charging stations or power supply. 'So in the meantime, there's still plenty of money to be made in the fuel business. Change is coming, but nowhere near as fast as people predicted,' he said. As testament to that, Walmart is opening more than 45 new gas stations across the United States this year. 'With the openings this year, we will have more than 450 locations across 34 states,' said Amanda Cantu, a Walmart spokesperson. 'Walmart fuel and convenience stations operate at stores without Murphy USA (MUSA) stations,' 'Our one-stop shops offer low prices at the pumps, and Walmart+ members save up to 10 cents per gallonwith their membership,' Cantu said, adding that Walmart fuel and convenience stations also provide a wide range of grab-and-go items. Costco and Dollar General (DG) did not return requests for comment, but earlier this year Costco announced that they would be expanding the hours of their members-only fuel centers, with most to stay open until 10 p.m., rather than 9 p.m., and still well beyond the typical 6 p.m. closing time of the store. 'Generally, our stations are now staying open an hour later than they did previously, with some opening earlier as well,' said Costco CEO Rob Vachris in a March earnings call with investors. Dollar General's move into fuel has been more halting, starting with a pilot location in Alabama that has now expanded to more than 40 stores, primarily in the South. But according to foot traffic estimates, there has been an increase in the number of retailers visited for non-discretionary goods and service, increasing competition among chains. 'Retailers are looking for a way to incentivize consumers to forgo competitors, and adding gas offerings or other services is certainly a lever that chains can utilize,' according to Elizabeth Lafontaine, director of research at analytics firm, 'Our data also indicates that the cross-visitation between the convenience store channel and other non-discretionary retailers has grown since the pandemic, and retail chains may be looking to take back some of that share of visitation.' Usha Haley, an expert on international strategy and currently the W. Frank Barton Distinguished Chair in International Business at Wichita State University, has studied the fuel business. She said that the retail giants appear to mirror each other's strategies as they compete for price-sensitive consumers. As the companies' operating margins are often below 3%, each does not want to risk giving competitors an advantage. 'Walmart's move into fuel signals an effort to rival Costco's successful fuel business, roughly 12% of its total sales in 2024. But, Walmart's gas stations will be open to any customer, unlike Costco and Sam's Club which restricts access to members. This could broaden Walmart's reach and boost revenue,' Haley said. She added that Costco, on the other hand, has followed Walmart's lead on U.S. tariffs, asking Chinese suppliers to absorb the costs, but they have resisted due to already operating under razor-thin profit margins. Walmart has now admitted that it may be forced to pass the costs of the tariffs to consumers and expects a drop in sales. Gas sales could cushion that blow. 'As gas prices are expected to fall initially under President Trump's policies, Walmart plans to compensate for some of the tariff-induced losses – before gas prices rise again, as they probably will,' Haley said. Manish Choudhary, CEO of SymphonyAI, which offers AI-driven analytics for retailers, said that since gas is a product that a vast majority of consumers still buy, it makes sense even for non-traditional fuel retailers to invest in it. 'The trend of retailers investing in gas stations highlights the broader industry trend of expanding on offerings beyond the traditional grocery or retail stores and placing an emphasis on responding to customer needs,' he said, adding that by investing in gas stations, retailers are able to further build loyalty with their customer base and provide the convenience of offering a filling station next to where shoppers are picking up their groceries for the week. And in a retail landscape that has been scrambled by supply chain kinks, tariffs, and inflation, gas is a no-frills winner. ' As consumers' expectations continue to evolve amid tariffs and market index fluctuations, retailers are forced to find new ways to foster loyalty, deliver exceptional customer experiences, and enhance each customer touchpoint,' Choudary said. SymphonyAI's new Grocery Sentiment Index highlighted the importance of nurturing customer bases as the behavior of loyal shoppers significantly impacted overall sentiment. Choudhary also explained that some of these retailers may be betting on the future that EV stations will one day replace gas pumps almost entirely, in which case, there is an opportunity to capture more business. 'The rise in EVs will present another opportunity for retailers. As traditional gas fueling stops take an average of seven minutes, EV charging can take half an hour or longer, even with fast charging technology,' he noted. This extended downtime presents a unique opportunity for retailers to reel shoppers into their stores. So retailers might seem like they are going retro by adding gas, but they are actually betting on the future, in hopes that you'll charge on your card, while your car charges in their lot. For the latest news, Facebook, Twitter and Instagram.
Forbes
21-03-2025
- Business
- Forbes
The Rise In Business Bankruptcies: Key Trends And Steps For Leaders
Joe Camberato is the CEO and Founder of National Business Capital, a leading fintech marketplace offering streamlined small business loans. From March 2023 to April 2024, business bankruptcy filings rose more than 40%, affecting companies across many different industries. Many large, well-known companies experienced the fallout from high interest rates and inflation. A Cornerstone Research report found that 113 private and public companies with assets over $100 million filed Chapter 7 or Chapter 11 bankruptcy. Plus, 16 'mega bankruptcies'—companies with over $1 billion in assets—occurred in the first half of 2024. This is the highest number of mega bankruptcies in a six-month period since the Covid-19 pandemic. These filings increased across all industries, but the retail trade, services and manufacturing industries got hit the hardest. The services industry in particular accounted for 29% of all bankruptcies, which was a significant increase from its historical average of 17% from 2005 to 2023. Additionally, bankruptcies rose across the finance, insurance and real estate industries. By the end of 2024, total business bankruptcy filings rose 22.1%—from 18,926 in 2023 to 23,107—according to statistics released by the Administrative Office of the U.S. Courts. So, what's causing the increase? Business bankruptcies have grown in recent years, fueled by economic pressure and changes in the market. When a company goes out of business, there's not one factor you can single out as the culprit—it's usually a combination of many different factors. Let's look at four trends that are negatively affecting many companies as well as ways you can protect your business in difficult times. Most companies cite rising costs from inflation and interest rates as the number one reason they filed for bankruptcy. For example, Red Lobster pointed to macroeconomic pressures like inflation and rising wages, while Enviva stated that historically high inflation hurt its profit margins on long-term contracts. Inflation drove up the cost of raw materials, labor and energy, eating into business profit margins. Many companies carry debt with variable interest rates, so the cost of managing this debt also increased as interest rates rose. The combination of inflation and high interest rates put pressure on companies from all sides, making it harder for them to maintain a positive cash flow. These trends pale compared to 2020, when business bankruptcies hit a 10-year high and 630 companies filed for bankruptcy. But in many ways, what we're seeing now is the lingering effects of the pandemic. Over 79% of the mega bankruptcies cited it as a significant contributing factor. Companies like Bed Bath & Beyond and Revlon struggled with supply chain disruptions that increased costs and made their day-to-day operations less efficient. Plus, many businesses dealt with staffing shortages and higher wages, all while trying to navigate lower profit margins. However, perhaps the most significant factor was how the pandemic permanently changed market dynamics. Covid-19 rapidly accelerated changes in consumer behavior, forcing companies to adapt to new markets. Many large companies just couldn't keep up with the speed and scale of these changes. Increased competition within industries also contributed to reduced profits and market share for many companies. Well-established companies are now forced to compete with more agile competitors. For instance, Rite Aid noted it has to compete not only with traditional drugstores and supermarkets but also with online retailers like Amazon. Increased competition forces these companies to lower prices to attract new customers, which also lowers profit margins. When you combine that with rising costs and high interest rates, companies have fewer resources available to deal with these lower margins, increasing the risk of bankruptcy. The Cornerstone Research report also highlights how many companies struggled with unsuccessful strategic initiatives, which led to financial losses. Many companies attempted to pivot during the pandemic by offering new products, but these efforts ultimately fell short. For example, some companies tried to begin offering remote services without understanding the full investment required to make these changes. Many established companies in the retail and manufacturing industries were unable to innovate or pivot quickly enough. Their reluctance to embrace new technologies or change their business models only made them more vulnerable. Federal support, such as the Paycheck Protection Program, provided temporary financial relief. However, it was ultimately a temporary lifeline carrying many companies that would have gone out of business without it. Federal relief programs can help you get through a difficult season in your business, but they aren't a long-term strategy. Start taking proactive steps to improve your financial and operational structures. For instance, you may need to renegotiate your debt terms to improve cash flow. It's also important to address supply chain vulnerabilities and hiring challenges before they turn into major business disruptions. But most importantly, start investing in innovation and digital transformation now. This is about more than just adopting new software—it's about rethinking your company's processes and how you engage with your customers. For example, you may need to diversify your product line or switch up your marketing strategy. Incorporating strategic initiatives and strong financial planning is the best way to navigate a competitive market and protect your business in difficult times. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Yahoo
17-02-2025
- Business
- Yahoo
Jump On These Ways To Earn Passive Income Now — Before It's Too Late
These days, it always helps to have a side gig. Freelancing, ride sharing and babysitting are great ways to earn some additional money, but the best kind of income to generate if you are working full time and juggling family responsibilities is passive income. Read Next: Try This: 5 Subtly Genius Moves All Wealthy People Make With Their Money However, there are a lot of changes happening within the economy right now, meaning that some of these passive income streams might not be around for much longer, once interest rates start dropping. GOBankingRates reached out to experts who offered their thoughts to share on why you should jump on these ways to earn passive income before it's too late. There are lots of ways that you can make money using the money that you already have. It's not working for additional dollars, but instead, having your money work for you with a high yield on certain accounts and investments. 'I would start by checking out local banks and credit unions,' said Joe Camberato, the CEO of National Business Capital. 'Many of them are still offering high rates on CDs and money market accounts, because they're actively trying to bring in more deposits. Online banks are another solid option, but just make sure the account is FDIC-insured and do your homework, especially with newer platforms.' 'The easiest and most liquid option would be a high-yield savings account,' added Chad Willardson, the president and founder of Pacific Capital. 'Ditch the pathetic 0.01% APY bank account and grab the higher interest rates available from an online bank account. If you can leave your money parked for 6 months to a few years, you can lock in the current interest rates in a certificate of deposit (CD).' He suggested laddering your CDs, so some of your money becomes available every year, but you can still lock in the highest rates. Learn More: 'The oldest and most traditional form of creating passive income is investing in real estate,' said Willardson. 'That's an entirely different conversation than simply depositing money in a bank account. But if you can be patient and disciplined, you may find the passive income from real estate is a great way to earn increasing cash flow as inflation continues to rise. There are also many potential tax advantages to real estate investing.' Just note that if you're going to maximize your profit, this won't be entirely passive. If you buy a fixer-upper to flip, for example, you can pay someone else to do the work, keeping it passive, or fix it yourself with some labor. Rentals, too, can be passive or not, depending on whether you hire a property manager. 'Higher interest rates can hurt home sales, which can increase demand for rentals,' said Erika Kullberg, a personal finance expert and founder of 'Investors can look for solid rental property opportunities to generate passive income when rates are high.' If you are in a position to loan out money and collect the interest as a form of payment, then you might want to look into peer to peer (P2P) lending as a passive income option. 'Peer to peer lending platforms let you become the lender and take advantage of higher interest rates,' Kullberg said. 'There are other alternative investments that allow you to loan money to individuals or businesses for higher rates, but I like the simplicity of the P2P platforms, which are accessible to everyone.' More From GOBankingRates 5 Subtly Genius Moves All Wealthy People Make With Their Money 4 Unusual Ways To Make Extra Money That Actually Work 3 Ways a Balance Transfer Helps You Manage Debt (And How Much it Could Save You)This article originally appeared on Jump On These Ways To Earn Passive Income Now — Before It's Too Late Sign in to access your portfolio
