Convenience Chains Battle for Hegemony in PA

A fierce battle has erupted between two regional convenience store chains for hegemony in Pennsylvania, a front line in a war of expanding retail footprints that will get larger in coming months. 

In this case, the duel involves an Atlantic Coast giant and a family-owned chain based in Central PA with a footprint that spans Ohio to Virginia and states in between.

The coastal giant is Wawa, which operates more than 965 stores in Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington DC.

In June, Wawa announced that it plans to open up 40 additional stores in Pennsylvania along the Susquehanna River during the next three to five years, which would double the number of stores Wawa has in the region.

Facing this wave of new competition is Altoona, PA-based Sheetz, a family-owned chain founded in 1952 that operates 655 stores in 6 states, with the largest footprint in Pennsylvania (294 stores), followed by North Carolina (113), Virginia (94), Ohio (62), West Virginia (59) and Maryland (33).

Sheetz convenience stores usually include gas stations as well as retail outlets. The 24/7 stores include a made-to-order menu where customers can order customized specialty drinks or food items around the clock.

Last week, Sheetz responded to Wawa’s thrust into Central PA by expanding its footprint—in Western Pennsylvania, like an army preparing for a flanking maneuver.

According to a report in the Pittsburgh Post-Gazette, Sheetz has announced plans to open as many as 30 new stores in Western PA and has chosen CBRE to assist RBG Development with picking the sites for the new outlets.

“Even though Sheetz has a long history in Western Pennsylvania, there are many areas that could benefit from the 24/7 convenience that our company provides,” Brian Dinges, director of real estate for Sheetz, told the newspaper.

At the beginning of 2022, Sheetz said it is launching an Ohio expansion that envisions 50 new stores opening in the Columbus area in the next five years, with Skilkin Gold as the exclusive real estate developer for sheets in Central Ohio.

Wawa is in the middle of a build-out that will open 54 new stores in its current markets by the end of the year. Wawa also has announced plan to enter the Tennessee market in 2025, estimating that it could eventually open as many as 40 stores in the Nashville area, where the first TN franchise will be located.

Earlier this year, Sheetz announced that it was partnering with unified retail planning tech provider Relex Solutions to help it analyze the need for store growth, supply chain growth and other aspects of its “demand planning” processes to ensure an efficient supply chain workflow.