Report: Wal-Mart Will Run Gas Stations

(RTTNews) - As it grapples with slow sales growth at its stores amid stiff competition from online retailers, Wal-Mart Stores Inc. (WMT) has reportedly decided to build and operate its own gas stations in the parking lots of the company's stores.

According to a MarketWatch report, Wal-Mart executives told Murphy USA Inc. (MUSA) last week that going forward, the retail giant will run its own gas stations. However, Murphy will continue to run the more than 1,000 locations it has already built near Wal-Mart stores.

Unlike oil companies that are struggling with falling oil prices, gas-station owners have not been hurt by the lower prices at the pump as they have benefited from lower fuel expenses.

Wal-Mart reportedly expects to boost sales at its stores by adding gas stations to parking lots. The company sees the sale of gasoline as a way to lure shoppers to buy higher-margin merchandise in the main store.

Since 1997, Wal-Mart has operated gas stations in front of its Sam's Club chain of warehouses. The company also operates hundreds of gas stations in front of its about 4,500 Wal-Mart stores.

Going ahead, Wal-Mart reportedly plans to add its own gas stations when building new stores.

In mid-January, Wal-Mart said it plans to close 269 under-performing stores in the U.S. and globally as well as exit Walmart Express as part of the store closures.

The impacted stores represent less than 1 percent of both global square footage and revenue. In total, about 16,000 associates will be impacted by the company's decision, about 10,000 of them in the U.S.