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"The convenience store industry as a whole regards the Sheetz company and the Sheetz family very, very highly," said Claire Pamplin, editor of Convenience Store News, a trade magazine based in New York City. "They are very often cited as industry leaders in convenience store offerings such as food service, store image and in- store technology" such as touch-screen imaging used to order its signature MTOs -- Made To Order -- subs, sandwiches and salads.
Pamplin said Sheetz's proprietary foods help set it apart from other chains and that Sheetz officials understood earlier than many competitors the value of having a proprietary brand. It even has its own brand of cigarettes, Jacks.
Sheetz stores have traditionally been located in Central and Western Pennsylvania but are moving east into areas where convenience stores Turkey Hill and Wawa are more predominant. Sheetz also has stores in Virginia, Maryland, West Virginia, Ohio and North Carolina.
It took 47 years for convenience store chain Sheetz to make its first $1 billion in sales, but it surpassed its second billion just four years later.
Altoona-based Sheetz, founded in 1952 with a dairy and restaurant, has branched into six states as it prepares to open its 300th store in the spring.
The company is now run by Stanton Sheetz, president and son of founder Bob Sheetz, and Steve Sheetz, Bob's brother and chairman of the family-owned company. They say the chain has been able to grow by delivering friendly customer service, despite the growth of nontraditional competitors such as megaretailers and big-box pharmacies.
"If you're not supporting the customer, you'd better be supporting someone who is," Steve Sheetz said. Sheetz employs "secret shoppers" and solicits ideas for improvement on its Web site.
Privately held Sheetz generated about $2.4 billion in sales last year and aims to grow by 10 percent annually. To keep its edge and continue on that expansion path, it employs three registered chefs who develop menu items, experiments with new products and marketing techniques and recently opened a $23 million distribution facility.
"The convenience store industry as a whole regards the Sheetz company and the Sheetz family very, very highly," said Claire Pamplin, editor of Convenience Store News, a trade magazine based in New York City. "They are very often cited as industry leaders in convenience store offerings such as food service, store image and in- store technology" such as touch-screen imaging used to order its signature MTOs -- Made To Order -- subs, sandwiches and salads.
Pamplin said Sheetz's proprietary foods help set it apart from other chains and that Sheetz officials understood earlier than many competitors the value of having a proprietary brand. It even has its own brand of cigarettes, Jacks.
"Convenience stores used to be convenient locations, extended hours. That isn't going to keep you in business any longer than a few months now, because everyone is offering that," said Jeff Lenard, a spokesman for the Alexandria, Va.-based National Association of Convenience Stores.
"Their food service just keeps getting better and better," said Lenard, adding that food service helps build loyalty. "Most people tell you, you make pennies at the pump and dollars inside."
Despite the many milestones the company has passed, Stanton and Steve Sheetz say the chain's defining moment came in 1972 when the stores doubled from seven to 14.
Up to that point, the company had little cash. Suppliers who expected to be paid in the standard 45 days were backed up to 80 days. But the company stayed afloat and decided to forge on, and has become and industry leader, according to Lenard and Pamplin.
"That was really the year that spurred our growth," Stanton Sheetz said. "We learned what we didn't know," Steve Sheetz added.
Sheetz stores have traditionally been located in Central and Western Pennsylvania but are moving east into areas where convenience stores Turkey Hill and Wawa are more predominant. Sheetz also has stores in Virginia, Maryland, West Virginia, Ohio and North Carolina.
With about 10,000 employees, Sheetz was named one of the 10 best large companies to work for in Pennsylvania in 2002 and 2003, according to a state ranking. In 2003, Forbes magazine ranked Sheetz 109th on its list of the top 500 privately held companies.
One of its newest stores in suburban Pittsburgh features its latest innovation, Sheetz Bros. Coffee, a coffee bar that allows customers to order custom coffee drinks using touch-screens such as those used to order food. For years Sheetz didn't offer coffee, and its first coffee came from a home model Mr. Coffee maker; each store now sells 500 cups a day.
"We're bringing a convenience to the customers that don't have a Starbucks around," said Ray Ryan, vice president of distribution services.
In September 2001, Sheetz opened a 365,000-square-foot distribution center about 15 miles south of Altoona in Claysburg. The warehouse -- about the width of one football field and the length of three -- enables the chain to serve as its own distributor, instead of relying on third parties to transport convenience staples such as sodas, cigarettes and beef jerky.
Stores receive custom deliveries three time a week, which ensures fast product turnaround and reduces the amount of stock a store must have, Ryan said. Employees in the distribution center use wrist- worn computers that let them know how many of a given item to pull from shelves and put into the blue bins that are shipped to the stores. The system is efficient and accurate, Ryan said.
Deliveries are made through its fleet of about 40 bright red tractor-trailers, which also serve as rolling billboards for their food and coffee.
"They always seem to know the value of advertising, whether it was billboards or other media," Pamplin said. "They're just good with image, and they just really seem to understand that."
PHOTO; Caption: PHOTO: Keith Srakocic/Associated Press: Steve, left, and Stan Sheetz started the convenience store chain in 1952. It took Sheetz 47 years to make its first $1 billion in sales, but it reached its second billion just four years later, in 2003.
Copyright Post Gazette Publishing Company Feb 17, 2004