3 ms·
Undercutting on gas prices is hardly the point. Most well-known chains charge more for gas -- and get away with it because their stores are cleaner, more conven
by listenallyall 7y ago
Undercutting on gas prices is hardly the point. Most well-known chains charge more for gas -- and get away with it because their stores are cleaner, more convenient, have more pumps (so less waiting), and a far better C-store experience.
The store side is primarily where chains threaten independent operators because they can have a lower cost structure overall -- much more purchasing power on food/snacks/soda, more ability to offer fresh food (Wawa sandwiches, Racetrac frozen yogurt, etc), better stocking, and far more labor efficiency.
Your own number of 168k gas stations proves the point -- that number is from 2004, and is 40,000 less than a decade earlier. While there are many reasons why gas stations are closing, surely increased competition from brand-name mega-stores with 16, 24+ pumps each -- is one of those reasons.
https://www.fueleconomy.gov/feg/quizzes/answerQuiz16.shtml https://www.fueleconomy.gov/feg/quizzes/answerQuiz16.shtml