With a market efficiency of more than four times the industry average, Sheetz Inc. is one of the most potent fuel retailers in the United States. That’s despite its slim price differential compared to its market competition in 2017, according to OPIS data. The key for the Altoona, Pa.-based chain is to use the store to draw in customers.
“The key is the ability of the two drivers: location and price,” Mike Lorenz, executive vice president of petroleum supply for Sheetz, told CSP. “Once you can get them on the lot, one of the lowest hurdles we see is getting them to come in and buy a drink. Then we try to build from there.”
Lorenz credits Sheetz’s loyalty program, which offers 3 cents per gallon off fuel purchases, as a key connection between forecourt and backcourt.
Sheetz is also willing to stretch beyond traditional fuels, with 220 locations that sell E15 and E85. It markets E15, the 15% ethanol-gasoline blend, as Unleaded 88, referring to the octane of the fuel. It also has ramped up its electric-vehicle (EV) charging offer, with more than a dozen Tesla Supercharger sites and six more on the way in 2018, as well as a few sites with Electrify America.
|Price Differential:||-0.31 CPG|