Walmart to Slash Gas Prices to Lure Shoppers

by Christopher Freeburn | April 2, 2013 10:12 am

Walmart to Slash Gas Prices to Lure Shoppers

walmart store 300x180 Walmart to Slash Gas Prices to Lure Shoppers[1]The nation’s largest retailer sees near record-high gasoline prices as an opportunity[2].

Discount retail giant Walmart (NYSE:WMT[3]) will trim 15 cents off the price of a gallon of gas purchased at its store-based gas stations. In order to get the discount, customers must use either a credit card or a Walmart MoneyCard, Reuters notes.

Customers can take advantage of the gasoline markdown from April 1 through July 7. The move is meant to counter the impact of higher taxes, a sluggish economy and rising gas prices, which have constrained consumer spending.

A Walmart executive noted that for each 1-cent increase in gas prices, consumer disposable income declines by an aggregate $1 billion. The company has more than 1,000 gasoline stations at stores around the country.

Shoppers who use a Walmart gift card at the pump will receive a 10-cent per gallon discount.

In February, AAA found that U.S. households were paying an average of 4% of pre-tax income[4] for gasoline as prices hit record highs.

Shares of Walmart rose fractionally in Tuesday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/06/walmart-store.jpg
  2. near record-high gasoline prices as an opportunity: http://www.reuters.com/article/2013/04/01/us-walmart-gasoline-idUSBRE9300DQ20130401
  3. WMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=WMT
  4. paying an average of 4% of pre-tax income: http://investorplace.com/2013/02/consumers-paying-record-gas-prices-for-february/

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