Retailers Entering Fuel Business: 7 Game-Changing Moves

Imagine walking into your local Walmart, filling your car’s tank, and grabbing groceries — all in one seamless stop. That’s not fiction anymore. Across the globe, retailers entering the fuel business are rewriting how consumers think about convenience, loyalty, and value.

From Walmart and Costco in the U.S. to Reliance Retail in India and Tesco-Shell collaborations in the U.K., the line between fuel stations and retail stores is blurring faster than ever.

But why are global retailers making this bold move into a historically low-margin, capital-heavy sector? Let’s dive deep into the 7 game-changing strategies fueling this trend — and how small businesses can learn from them.

1. The Rise of “Fuel + Retail” Convenience Hubs

According to a 2024 McKinsey Report, global fuel retail is undergoing transformation due to EV adoption, digital payments, and changing mobility patterns. Retailers see this as an opportunity — not a threat.

By combining fuel sales with retail experiences, brands like Costco, Target, and Walmart are creating high-traffic “one-stop” locations.

Example:
Costco’s gas stations attract over 50 million visits per month in the U.S., boosting in-store sales by nearly 12%, according to Statista.

2. The Profit Challenge — and Why It Still Makes Sense

Let’s face it: fuel retail has razor-thin margins. Average profits hover around 3–7 cents per gallon.

So why are retailers entering the fuel business anyway?

Because the real profits come from cross-selling and loyalty programs.
Every fuel customer becomes a potential buyer for groceries, car accessories, or snacks.

Data Insight:
According to a 2023 NACS (National Association of Convenience Stores) study, 65% of fuel customers make additional in-store purchases.

Retailers like 7-Eleven have mastered this — earning 75% of profits from non-fuel sales.

3. Global Retailers Making Big Fuel Moves

United States – Walmart, Costco & Kroger

Walmart’s fuel stations are now part of its “everyday convenience” strategy, helping it compete with Amazon Fresh and Target.
Costco, on the other hand, leverages member-only fuel pricing to lock in loyalty — a model generating billions annually.

United Kingdom – Tesco & Shell Partnership

Tesco partnered with Shell to co-brand fuel stations across the UK.
The Tesco Clubcard program integrates seamlessly with fuel points — giving customers discounts both at the pump and in-store.

India – Reliance & BP (Jio-BP)

Reliance Retail and BP’s joint venture “Jio-bp” is redefining India’s fuel experience.
Their mobility stations combine fuel, EV charging, food courts, and digital payments — attracting younger, tech-savvy consumers.

Global Players – Carrefour & Circle K

European giants like Carrefour are launching multi-service energy hubs, while Circle K invests in EV charging and renewable fuel technology — preparing for a post-petrol future.

4. The Electric Vehicle (EV) Factor: Reinventing the Forecourt

Retailers entering the fuel business are no longer just about petrol pumps.
They’re evolving into “energy hubs” that serve EVs, hydrogen vehicles, and more.

Example:
In 2024, Tesco installed over 2,400 EV charging points in partnership with Volkswagen.

5. Data, Loyalty, and the New Digital Forecourt

Fuel transactions generate millions of customer data points daily — a goldmine for modern retailers.

With AI-driven personalization, retailers can offer:

• Dynamic fuel discounts

   

• Personalized in-store coupons

   

• Predictive stock management

   

Example:
Kroger’s “Fuel Points” program integrates with its digital shopping app, driving a 20% higher retention rate than non-fuel customers.

“Fuel is no longer just a commodity — it’s a data gateway.”
— Forbes Retail Innovation Report, 2025

6. Challenges Facing Retailers Entering the Fuel Business

Despite the opportunities, this move comes with serious challenges:

• High infrastructure costs (especially for EV and hybrid fuel stations)

   

• Environmental regulations and carbon emission limits

   

• Market saturation from legacy oil giants

   

• Volatile oil prices impacting margins

   

However, innovation is the key differentiator.
Brands that blend fuel, retail, and digital ecosystems will win the loyalty war.

Personal Experience Insight:
When I visited a Jio-bp mobility station in Mumbai, I was surprised at how “unlike a gas station” it felt — clean, digital-first, and food-driven. It felt like a futuristic mall.

7. The Future: From Fuel Retail to Lifestyle Ecosystems

By 2030, the global fuel retail market is projected to hit $3.5 trillion (Statista).
But only the retailers that embrace sustainability, AI, and omnichannel experience will thrive.

Expect to see:

• EV-first fuel stations

   

• Subscription-based refueling

   

• Drone-assisted deliveries

   

• In-store mini-markets linked to loyalty apps

   

Retailers entering the fuel business are not just diversifying — they’re future-proofing.

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