Higher fuel prices driven by the Middle East conflict pushed average transaction volume at Walmart and Sam's Club gas stations to a four-year low, executives said Thursday during a conference call discussing financial results for the fiscal 2027 first quarter ended April 30.
While higher-income consumers are "spending with confidence into many categories," the company has observed that lower-income consumers are budget conscious and under financial stress.
"We have a large fuel business [in the U.S.], and we see that in the most recent period, the [average] number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022," Chief Financial Officer John David Rainey told analysts. "That's an indication of stress."
U.S. fuel prices hit record highs at the onset of the Ukraine war in 2022.
Walmart is one of the largest and most competitive fuel retailers in the U.S., with 452 gas stations at Walmart stores and 531 stations at Sam's Club warehouses, according to OPIS MarketSharePro. Together, they have a 5.27% share of the U.S. fuel market, based on gas brand market share by visits.
According to OPIS, Sam's is retailing fuel at an average of 24cts/gal below local markets and average Walmart gas stations are posting prices 18cts/gal below markets across the U.S.
During economic stress, the low street prices are giving the company's fuel operations a competitive edge. Rainey said most U.S. gas stations are losing volume, but Walmart's volume is rising.
"In our Sam's business, in the month of May our gallons are up 12%. If you look across the industry, they're down 5%. That tells you that customers are coming to us looking for value," Rainey said. "What's important to note about that is that a fuel member spends 1.6 times more in the rest of the basket than a non-fuel member. It just shows the importance of engagement and the importance of leaning in in these periods where wallets are stretched to provide these price points for customers that they find attractive."
OPIS figures show the average U.S. gas station is seeing an even steeper decline in volume than Walmart's estimate, with same-store gallons down 6.8% year over year in May.
However, like its customers, Walmart's operations are under pressure because of fuel price increases. Higher fuel costs in distribution and fulfillment operations eroded Walmart's operating profits by 250 basis points, though the company's Q1 operating income was up 5% year over year.
"It so happens that tariffs last year and higher fuel prices this year are a couple of exogenous shocks that we need to navigate," Rainey said.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Donna Harris, dharris@opisnet.com; Editing by Allegra Fradkin, afradkin@opisnet.com
(END) Dow Jones Newswires
May 21, 2026 12:34 ET (16:34 GMT)
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