Jim Pacheco doesn’t spend time comparing gas prices. Instead, he heads to the Safeway at Thornton Parkway and Washington Street in Thornton.
“This is the cheapest in the area,” said Pacheco, a 73-year- old retiree from Northglenn.
Indeed, groceries and discount clubs are winning fans with competitive prices. They’ve also drawn the ire of traditional station owners, who accuse the stores of using gas as a loss leader.
Sam’s Club offered the lowest price per gallon based on data collected last Wednesday, a Denver Post analysis of state gas prices showed. King Soopers, Costco and Safeway were also among the six lowest-priced.
Both Safeway and Kroger- owned King Soopers offer loyalty-card users a 3-cent-per- gallon discount off posted prices. Safeway frequently knocks 6 cents off when shoppers spend at least $50 on groceries. King Soopers runs similar promotions, spokesman Trail Daugherty said.
Such aggressive pricing has “had a very detrimental effect on our industry,” said Roy Turner, executive vice president of the Colorado/Wyoming Petroleum Marketers and Convenience Store Association.
Some convenience stores are incorporating revenue streams such as fast food, photo processing and check-cashing to respond to the change, he said.
Turner believes grocers and membership warehouse are selling gas below cost to woo customers – an allegation Safe way spokesman Jeff Stroh denies.
