Small Stores Struggling to Compete With Modern C-Stores

Sheetz, GetGo, and Wawa mentioned as cutting edge c-stores that move far beyond notions of traditional convenience store retailing.

April 12, 2011

PITTSBURGH - A feature in this past weekend??s Pittsburgh Tribune-Review highlighted modern convenience stores like Giant Eagle??s new GetGo store in South Fayette that have its smaller convenience store revivals fighting for survival.

With fresh baked break, made-to-order subs, 30 varieties of coffee, 16 fuel dispensers and a car wash, the new store is making a strong impression on locals.

??Everything is fresh, and it's all good," said customer Josh Aldrich, who said he stops at GetGo about four times a week.

"Modern convenience stores with gas pumps bear little resemblance to converted garage bays and other small stores that sell drinks, hot dogs and windshield-wiper fluid," the Tribune-Review wrote, citing the newest Sheetz, GetGo and Wawa stores in Pennsylvania and nearby states as examples, with retail expert Burt P. Flickinger III characterizing them as "the franchisee-owned convenience store's worst nightmare."

??The meals-to-go program Sheetz has is one of the finest anywhere in the world?? including high-end convenience stores in Japan, Beijing and Europe," said Flickinger, managing director of Strategic Resource Group in New York. ??The GetGo program is superb, and the brilliance of the food and fuel frequent shopper card overlay makes it that much tougher to compete against.??

New convenience stores tend to be double or more the size of those built a few decades ago. They feature wider selections of foods prepared on-site, drinks stacked in wall-long ??cold vaults?? and better decor and lighting.

Sales at Sheetz stores rose 7 percent last year and customer count increased 3 percent, said CEO Stan Sheetz. With 390 stores in six states, the company plans to open 30 stores this year, all 5,000 square or more in size.

"[Convenience stores] are maturing into a relatively sophisticated retail channel with a pretty well-developed fresh prepared foods offering that's inexpensive, yet still quick,?? said David Portalatin, executive director of The NPD Group.

Flickinger said Sheetz, GetGo and Wawa are ??three of the most formidable, well capitalized and most capable competitors anywhere in the world," with stores that can tally up to $350,000 a week in sales, split equally between the pump and inside the store.

By contrast, average convenience store sales average $15,000 to $25,000 a week.

Another standout performer, according to Flickinger, has been Sunoco??s APlus. Each month, the stores promote a breakfast sandwich and other items tied to gas rewards. The strategy has paid dividends, with customers visiting the stores more frequently, and with monthly same-store sales up 21 percent from 2008.

The article mentioned the success of rewards programs, including Superior Petroleum Group's Fueland stores and their Rollback Rewards, which help drive inside store sales.

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