7-Eleven Price Lock feature challenges Costco gas discounts

TheStreet··Read original
2▲2 ▼1Impact / 5
Summary · why it matters

7-Eleven's 7Rewards loyalty program offers a Price Lock feature that lets customers secure a low fuel price for four days, potentially undercutting Costco's gas prices. The feature, available through the 7-Eleven app, allows users to lock in a price and pay the lower amount if prices drop, providing a hedge against rising gas costs. The national average for regular gasoline hit $4.09 per gallon on July 23, up 15 cents from the prior week, driven by crude oil prices in the $90 per barrel range. Costco has reported record gas volumes as price-sensitive consumers seek the best deals, with 35% of gas customers also going inside the store after fueling. While Costco's value proposition is frictionless, 7-Eleven's Price Lock could offer cheaper gas in certain scenarios, though such instances may be rare.

Impact on assets 4

Digital Finance & Tokenization▲
Seven & I Holdings Co., Ltd.
3382
▲ PositiveDemandrelevance

7-Eleven's Price Lock feature is a new loyalty program benefit that could attract more gas customers and increase store traffic.

Consumer Staples▼
Costco Wholesale Corp
COST
▼ NegativeCompetitionrelevance

7-Eleven's Price Lock feature could undercut Costco's gas prices, potentially reducing Costco's gas volume and in-store traffic.

Others▲
⛏RBOB Gasoline Futures
GASOLINE
▲ PositiveSupplyrelevance

Article mentions crude oil prices in $90 range driving gas prices up, which is positive for RBOB gasoline futures.