Dive Brief:
- Wawa has been named one of the top 10 retail brands to watch this year by location analytics platform Placer.ai due to the chain’s competitive food program, increasing footprint and “strong” loyalty program.
- The Wawa, Pennsylvania-based retailer was the only c-store chain mentioned on Placer.ai’s report. Other food-focused companies mentioned included Whataburger, Dave & Busters, Grocery Outlet Bargain Market and Total Wine & More.
- Wawa’s latest recognition comes as it continues to rapidly accelerate its store growth around the country — an approach that comes with potential rewards as well as risks, experts say.
Dive Insight:
Wawa’s ambitious growth aspirations have been well-documented over the past year. Since March 2022, the company has announced plans to grow from seven to 14 states of operation and build on its existing territories within the coming years, hoping to reach 1,800 stores — making it the fourth-largest c-store chain nationwide.
Wawa’s strong foot traffic and customer loyalty in its current regions could be incentivizing these growth plans, according to Placer.ai. In its report, the company notes that Wawa experienced a more than 34% average increase in visits per store in each of its seven states of operation between July 2019 and November 2022. Wawa’s Washington D.C. stores saw the biggest increase at just over 50%.
Additionally, between July and November 2022, Wawa’s share of loyal customers — those returning to a location more than twice in a given time period — increased by 4.5% when compared to the same period in 2019, according to Placer.ai.
“This juxtaposition of strong loyalty, expansion plans and food that is celebrated by foodies and regular joes alike can help position the brand for success into the new year,” Placer.ai said.
But even as Wawa is eager to capitalize on its hard-earned popularity, it will need to be careful of overextending itself and keep execution high in areas like foodservice, experts have said. Lou Maiellano, a former senior supervisor for Wawa who now works for c-store consultancy b2b Solutions, said in a recent interview that he wonders whether or not Wawa will “maintain their consistency” or “become stale” amid its growth.
“I know that if I’m in Philly, I can get an Italian Hoagie, and get that same hoagie in Kissimmee, Florida,” he said. “That’s a monumental task to perform at that level.”
