Gasoline sales at warehouse clubs in the US

Difference between gas prices at warehouse clubs compared to traditional gas stations. Despite their big-brand names, the vast majority of Exxon, Chevron, BP and Shell gas stations are independently owned, so they aren't able to make a volume play like warehouse clubs do. Besides the added incentive of being able to draw customers inside their stores and warehouses.

of Costco's $20 billion annual sales comes from sale of gas. For BJ's it is around 9% of total sales. Walmart which owns Sam's Club, does not disclose what portion of its sales come from gas. Although warehouse clubs are able to make a profit on gas, they're not making much: Costco, for example, reported that gasoline has a lower profit margin than the rest of its business. Rising gas prices typically help Costco's sales, but hurt its profits.

Average gas sales per month at a Costco location com compared to an average of 80,000 gallons a month at typical gas stations. Gas is a notoriously low-margin business, but warehouse clubs can make money from selling huge volumes of gas -- even while charging much less than independent gas stations.