Tobacco

Wawa Shifting Tobacco Stamping to McLane

Operation doesn't fit retailer's core business

WAWA, Pa. -- Wawa Inc. is laying off 27 employees whose positions will be eliminated by early September because their jobs don't fit in the company's core business, officials confirmed for The Delaware County Daily Times. They are employed in Wawa's tobacco-stamping operations, which the report said the retailer is handing over in the fall to McLane Co. in New Jersey.

"We are committed to working to do everything we can to lessen the impact to the 27 associates who are affected by the discontinuation of the stamping operation," Lori Bruce of Wawa public relations told the newspaper.

Last month, the tobacco-stamping workers were given a memorandum from Wawa CEO Howard Stoeckel and president Chris Gheysens: "After a long and careful analysis and consideration, we have decided that, despite the significant improvements our associates have made in streamlining the process, it is no longer viable to run the stamping operation there," it stated.

Bruce said evolution is an integral part of staying in business.

"We spent considerable time and effort reviewing the complexity and viability of continuing the function prior to making the decision to move it to a third party," she said.

The memo also stated that the severance package would be offered on a voluntary and involuntary basis to the 27 employees. Bruce explained that those who are involuntarily separated are welcome to apply for other positions within the company.

Cathy Pulos, Wawa's chief people officer, said what the tobacco-stamping associates currently do is not relevant to Wawa's core competency.

Bruce added, "We plan to 'call back' those associates if other appropriate positions become available at the Beverage Center."

Pulos said the company has been considering eliminating the tobacco-stamping operation since 2007. "For a retailer to do this, it is not the norm," she told the paper. "We need to focus on our beverage and retail business."

Some questioned why the cost of cigarettes couldn't be increased, similar to spikes in coffee when that commodity's price rises. Wawa officials said that wouldn't be considered. "On the question of increasing prices," Bruce said, "this was never an option."

Wawa, based in Wawa, Pa.,  operates more than 590 stores in Pennsylvania, New Jersey, Delaware, Maryland and Virginia.

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