Walmart taking over development of its gas stations

Walmart wants to officially take over its gas pumps.

After a 20-year partnership with fellow Arkansas-based company Murphy USA, gas stations outside Walmart stores will be operated by and branded Walmart going forward. That means Walmart associates will work the pumps and the company picks up the sales not just from fuel but from additional purchases like convenience items and cigarettes.

The decision, which was made during discussions with Murphy late last week, is in line with Walmart's aim to make gas stations a bigger part of its strategy to drive traffic and sales, with plans "to put fuel stations in as many locations as we can," says spokesman Randy Hargrove.

Walmart has already operated gas stations outside Sam's Club locations since 1997 and operates a couple hundred stations at Walmart stores in the U.S. But Murphy operates the majority, with outposts at about 1,100 Walmart stores. Murphy will continue to oversee those stations and proceed with plans to open an additional 60, but after that, all future gas stations will be built out by Walmart.

Though Walmart recently announced it would close more than 150 stores in the U.S., it also plans to open more than 300 new ones over the next year, where providing customers with the option to fill up their tanks will be a top priority. Plus, Walmart-branded gas next to Walmart stores creates a more consistent experience for customers, Hargrove says.

Murphy did not immediately respond to a request for comment.