SHEETZ CONVENIENCE STORES Customer service fuels retail chain's growth surge

ALTOONA, Pa. (AP) -- 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.
Founded in Altoona in 1952, Sheetz has branched into six states and is making plans to open its 300th store in the spring. The chain has several stores in the Mahoning Valley.
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 better be supporting someone who is," Steve Sheetz said. Sheetz employs "secret shoppers" and solicits ideas for improvement on its Web site.
Last year, Sheetz had about $2.4 billion in sales, and the privately held company aims to grow by 10 percent annually. To keep its edge and continue growth, it recently opened a $23 million distribution facility, employs three registered chefs who develop menu items and experiments with new products and marketing techniques.
Highly regarded
"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 Sheetz officials understood the value of having a proprietary brand earlier than many competitors. 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."
1972 milestone
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.
Leading up to that, 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 an 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 into areas where convenience stores Turkey Hill and Wawa are more predominant -- 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.