Executive Summary

Running head: WAWA INC.
Executive Summary, Wawa Inc.
University Title
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
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
with marketing and advertising will compound the initial expenses thus resulting in the
projected negative income.
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-
Wawa. (2018). Retrieved April 19, 2018, from www.wawa.com:

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