When gas prices spike, consumers notice at the pump immediately. Rising fuel costs over the last several weeks have pushed shoppers toward the cheapest fuel they can find. Warehouse clubs, which have long marketed below-market fuel as a core membership benefit, were immediate beneficiaries. As covered in our recent report, Costco’s share of total U.S. gas station spend rose 50 basis points in two weeks, with Sam’s Club gaining 20 bps and BJ’s up 10 bps. While the fuel story is playing out predictably for the clubs, a more interesting dynamic is emerging off the pump. Murphy USA, the low-cost gas station and convenience store chain, has also increased its share of gas station spend by 30 bps in recent weeks. However, they are also successfully converting fuel customers into merchandise shoppers.
Consumer Edge credit and debit card data shows that Murphy’s ex-fuel transaction growth accelerated meaningfully along with the fuel business over the last seven weeks, moving up by 7% and 9% respectively. Meanwhile, club store ex-fuel performance over the same period did not see a similar lift.
The club store model relies on members who come primarily to stock up in bulk. Fuel is often a perk — a reason to make a trip to a location that may not otherwise be convenient. When prices spike, club members pump more, but that incremental fuel visit does not automatically translate into a warehouse purchase. The formats are separated by parking lots, cart corrals, and membership scan gates.
Murphy operates differently. Its stores are designed for quick, impulse-driven convenience purchases: beverages, snacks, tobacco, and everyday essentials. The physical layout removes friction that warehouse-scale formats cannot eliminate.
