Field-Tested Innovation · Fuel & Convenience

Creative Solutions: The Smart Fuel Pricing Engine

How a live crude-market feed, a third-party competitor pricing service, and two configurable variables replaced a manual, once- or twice-a-day price check with a system that watches, quantifies, and alerts — continuously.

The Problem

Competitive pricing was a manual, once-a-day guess

Retail fuel margins move on small numbers — a few cents a gallon, multiplied across thousands of gallons a day, per site. Before this tool existed, the pricing team's read on the competitive landscape came from manually checking nearby stations, with no fixed definition of "nearby" and no consistent trigger for when a move was actually worth reacting to.

Nobody was doing this badly on purpose — there just wasn't a system watching continuously. A competitor could move their price at 6am, and the first anyone at Walmart Fuel & Convenience found out was whenever someone next happened to look.

The Constraint Nobody Was Naming

A local price move means nothing without market context

Reacting correctly to a competitor's price change required answering two questions at once, and the manual process could only ever answer one of them:

1. Is this a real competitive move, or just crude oil drifting? A station's price can shift simply because the broader crude market moved that day — without a live WTI/Brent backdrop, every local signal had to be judged by feel.

2. Which stations even count as "nearby"? Manual checks had no consistent radius — different people, different days, different definitions of the competitive set.

3. Is this move even worth reacting to today? Without a dollar estimate attached, every alert looked equally urgent — or equally easy to postpone.

The pricing team didn't need someone checking more often. It needed something that never stopped checking at all.

The Fix

Two variables, a live feed, and an always-on engine

The engine replaced the manual scan with two inputs the pricing team controlled directly, checked continuously against a live competitor feed, with a market backdrop and a dollar estimate attached to every alert.

X — Radius

The competitive radius around a given site — defines which competitor stations count as "in the set" for that location.

Y — Price Gap

The tolerance threshold, in cents (e.g. 8¢, 10¢, 12¢), a competitor's price had to move — relative to the site's current price — before it counted as a breach.

How it works

1
📡

Ingest

WTI + Brent (macro context) and Kalibrate competitor prices (local layer), continuously

2
🔧

ETL

Combines those feeds with Walmart's own fuel pricing, traffic & gallons-sold data into one dataset

BI Layer
3
📏

Evaluate

For each site, check competitors within radius X against the site's current price

4
🔔

Detect Breach

Has any competitor's gap exceeded threshold Y since the last check?

5
💰

Quantify

Estimate the $ cost of not repricing, using site traffic & gallons sold

6
📱

Alert

Power BI dashboard + mobile push, naming the competitor and the delta

⏱ Running live: 24/7, not a periodic scan

Every alert was self-explanatory: which competitor moved, by how much, in which direction, at which site, and roughly what leaving it unaddressed was costing per day — so the pricing team could act, and prioritize across sites, without first going to verify the situation themselves.

Worked Example

What an alert actually looked like

Below is a recreation of the shape of a real alert, so the mechanism is concrete rather than just described.

Note on the data shown below: the layout and metric types reflect how the tool actually worked. The specific site number, prices, and volumes are illustrative, not real production figures.

Fuel & Convenience | Price Breach Alert

Site
1214
Radius (X)
3.0 mi
Threshold (Y)
10¢
WTI
$78.40
Brent
$82.15
Competitor
Regional Fuel Co.
Our Price
$2.99
Competitor Price
$2.87
Gap (breach)
12¢
Est. Daily Gallons
4,200
Est. Daily Impact
$504

Price Tracking — Us vs. Nearest Competitor (14 days, illustrative)

Open Alerts Ranked by Estimated Daily $ Impact (illustrative)

Why This Beat The Manual Process

Same market, fundamentally different failure mode

Manual competitor checkSmart Pricing Engine
Monitoring frequencyA few times a day, whenever someone checked24/7, continuous
Definition of "nearby"Inconsistent — varied by person and dayFixed, configurable radius (X)
Market contextJudged by feelLive WTI + Brent backdrop
Urgency of an alertAll moves looked equally worth reacting to (or not)Every breach comes with an estimated $ impact
Where the alert reaches youWherever you happened to be lookingPower BI dashboard + mobile push
Impact

What changed

24/7
Continuous monitoring, not a periodic manual scan
2 + 1
Live feeds combined: WTI, Brent & Kalibrate competitor pricing
$-Quantified
Every alert came with an estimated cost of inaction, not just a raw price gap
First-of-its-kind
The first automated, self-alerting pricing tool in Walmart Fuel & Convenience's history

The bigger shift wasn't just automation for its own sake — it was turning "a competitor changed their price" into "here's what that's costing us today, at this site, and here's how it ranks against every other open alert." That's what let a small pricing team stay ahead of a market that was never going to wait for a manual check.