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The Arizona gasoline market has heated up lately, as food retailers invest in gas pumps as a way of competing with similar operations set up by Wal-Mart and Sam's Club.

In addition to Safeway and Albertsons, both of which are using gas to generate traffic, Basha's Stores have now joined the fray by using a program that rewards its customers with free gasoline at Chevron stations.

The Business Journal of Phoenix notes that Basha's program differs from many others. The usual procedure is for the chain to absorb the cost of the gas discounts themselves, but Basha's actually is connecting its discounts to the purchases of specific products, passing on the cost of the discount coupons to those manufacturers.
KC's View:
We know that retailers such as Basha's are desperate to find ways to compete more effectively with the Nation of Wal-Mart. And sometimes you have to match the Bentonville Behemoth's moves.

But you have to believe that smaller, regional chains such as Basha's are better served by the things that they do that Wal-Mart does not.