Sheetz and Wawa are moving into each other’s territories. That could be good for consumers, writes Michael Tanenbaum for Philly Voice.
As each competes in the same space, they could try to lure customers with cheaper gas prices, predicts a Temple economist.
The Altoona-based Sheetz, strongest in western and central Pennsylvania, is opening a gas station for the first time in Limerick Township across the street from a Wawa at 454 W Ridge Pike in Montgomery Township.
Wawa, conversely, now has stores in the Harrisburg area and in Williamsport, Chambersburg, and York County, some within a half mile of Sheetz.
Sheetz is also planning moves into Chester County in Downingtown, less than a mile from Wawa.
The entanglements are a natural outgrowth of Hotelling’s Law, which states that similar goods and services tend to be clustered in prime locations that draw customers.
Sheetz will have to appeal to loyal Wawa customers with a promise of savings, possibly by offering cheaper gas prices.
“The winner in all of this is going to be the consumers in that area,” at least temporarily, said Joshua Mask, an economics professor at Temple University.
Ultimately, store choice will come down to branding and quality.
Read more about the impact of the Wawa-Sheetz competition in Philly Voice.
