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Running head: WAWA INC.

Executive Summary, Wawa Inc.

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WAWA INC.

Executive Summary

Wawa, Inc., a privately held company is the convenience store of the 21st-century,

poised to satisfy a need that will continue to exist into the future; the need for good food, fuel,

and cash. Wawa, Inc. will be your all day, fully automated, a 24-hour convenience store that

sells fresh, built-to-order foods, coffee, beverages, fuel services, and surcharge-free ATMs.

Over the years, the company has been capturing market share by providing quality products

at low costs, slightly undercutting competitors through cost leadership and significantly

reducing one of the primary costs, which is labor in the markets it has operated in the U.S. At

Wawa, Inc., clients will have the opportunity to stop and shop for daily items at significantly

reduced prices, therefore undercutting other local and international convenient store chains.

The company’s opportunities for growth are also excellent both locally and regionally.

Wawa, Inc., will trade in similar products as it has traditionally majored in other

cross-border stores in the U.S. The company sells freshly produced coffee, beverages, built-

to-order foods, fuel services, and provides its clients with surcharge-free ATMs. The

company has created a special brand of Wawa, Inc. foods, which include an assortment of

soups, built-to-order specialty beverages, hot breakfast sandwiches, freshly brewed coffee,

sides and snacks, and built-to-order hoagies. Many clients prefer visiting Wawa, Inc. fuel

stations because of the slight difference in price-per-gallon offered at Wawa, Inc. centers, the

surcharge-free ATMs, and the unique freshly brewed coffee and uniquely prepared products

that don’t go beyond the market prices (Wawa, 2018). Also, the company is committed to

expanding the range of products sold at the stores to accommodate local cultures and

minority groups with the proposal to introduce exotic brands.

Wawa, Inc.’s market is growing every day. According to figures posted by Statista

(2017), the in-store sales in the U.S. per convenience store averaged $1.43 million in 2017.

The total sales generated in 2015 alone from the convenience stores in the U.S. averaged

WAWA INC.

around $603 billion, with more than 50% of it emanating from the sale of motor fuel. By

2017, it was projected that the sale of gasoline would reach $600 billion thus indicating a

100% growth in sales within just two years. In-store sales in the U.S. convenient stores have

been recording year-on-year growth since 2011 (Statista, 2017). Overall, the convenience

retail store market is poised to grow in the coming years.

Convenience stores attend to the entire shopping population and its surrounding areas,

but specifically targets clients that need to purchase goods and services outside the traditional

working hours, for instance, shoppers who work as swing shift workers looking for snacks

and related elements. In light of this, Wawa, Inc. has segmented its market into quick

shoppers, night shoppers, and others. According to in-house analysis, growth in these market

segments is consistent with population growth for the area. The main competing firms

include CST Brands, Casey’s, Speedway, and Circle K.

Wawa, Inc. financial requirements for expansion into Mexico amount to $900,000,

money that will largely cover fees, and physical development of the whole business. These

expenses will be paid by company investments, private investors, and partly by financial

institutions through asset financing. For the first one year, the company expects to operate at

a negative income (loss). These losses will be incurred owing to the slow response from

advertising and marketing activities, which are common with every new market venture.

Wawa, Inc. will have a private arrangement with some financial institutions to boost the

company’s cash flow, which is expected to normalize over time.

The objectives for the next four years are: To roll out a second store in year 4; begin

paying share dividends by year 3; break even by year 2; earn sales amounting to $600,000 by

year 2, and attain profitability in the second year of operation. As aforementioned, the

company projects that the first 12 months will not be profitable given that it will be venturing

into a new untested market outside its traditional home-based markets. Setup costs together

WAWA INC.

with marketing and advertising will compound the initial expenses thus resulting in the

projected negative income.

WAWA INC.

References

Statista. (2017). Convenience stores in the U.S. - Statistics & Facts. Retrieved April 19, 2018,

from www.statista.com: https://www.statista.com/topics/3869/convenience-stores-in-

the-us/.

Wawa. (2018). Retrieved April 19, 2018, from www.wawa.com:

https://www.wawa.com/about.

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