There’s another popular grocery store chain coming for Costco’s cheap gas

Article excerpt

Kroger is expanding its gas station offerings to compete directly with Costco's discount fuel program, a move that could shake up the grocery-anchored fuel market this summer. The chain, which already operates gas stations at select locations, is ramping up its presence in an area where Costco has long dominated through its membership model. Kroger's strategy leverages its massive customer base and loyalty program to undercut competitors on price. The expansion signals intensifying competition in the convenience-fuel space, where margins are thin but customer loyalty runs deep. Industry analysts say the move could force other grocers to reconsider their own fuel strategies.