Americans are very sensitive to increases in gas prices. So, what better way to get them to a big box lot than offer them a way to save some money when they fuel up their cars and trucks? Costco, Kroger, Walmart and many others have dangled gas savings in front of consumers with great effectiveness.
Last June, Walmart announced a rollback at the pump to get it publicity and reinforce its image as a low price leader. At the time, the company's CMO Stephen Quinn said, "Our customers have told us that high gas prices are a top budget concern, nearly as large an expense to their households as food and groceries. We listen to our customers and because we know they are feeling squeezed by gas prices, we're implementing this gas rollback to help them save, especially during high travel summer months."
A recent report from across the Atlantic shows that big box merchants in the U.K. are following the same path. In fact, according to The Telegraph, roughly 46 percent of all gas sold there comes from pumps located in supermarket lots. Tesco has become the leader in the "petrol" market with a 15.5 percent share.
Smaller stations in the U.K. have maintained they are being victimized by predatory pricing and have taken their case to the government. One estimate, cited in The Telegraph report, had up to 300 independent stations in the U.K. going out of business as the result of being unable to compete with Tesco and others. Ultimately, the argument goes, consumers will be hurt as access to gas becomes more scarce, particularly in rural areas.