Employees at Wawa feel that their success is tied to that of the company, in large part because employee stock ownership makes it their company too.
Convenience chain Wawa is one of the largest ESOPs in America. Now, a power ranking by Forbes has named them as one of the largest private companies in America, as well. Wawa ranked 29th, with a revenue of $11 billion and 38,000 employees, making them the largest privately owned company in Pennsylvania.
Wawa ranked well ahead of their rival, Sheetz, which is traditionally owned and ranked at 75 with half as much revenue.
Wawa became an ESOP company in 1992, and has since become one of the most famous ESOP success stories. They expanded their ESOP in 2003, when their shares were worth $900 apiece. In 2020, those shares reached $14,000. Inc. reported that many Wawa employees have retired as millionaires.
Cheryl Farley started working part-time at Wawa in 1982, eventually moving into their IT department. She retired at age 58 and immediately launched into a life of travel. “Because of the ESOP, many recent retirees are doing things that many people would never dream of. I’m healthy, I’m young and I get to relax,” she told Inc. in 2018.
Part of Wawa’s success is doubtlessly due to the strong allegiance that many customers have to their brand. People want to work there, and they want to shop there. The average customer spends $7.42 per visit, they reported to Inc., well over the national average convenience store purchase of $4.12.
We have said it here before, and will surely say it again: customers prefer shopping at ESOP companies. When a company takes care of its employees and gets them engaged and invested in the success of their business, it translates to a better customer experience that keeps people coming back for more.
Will your company be the next big ESOP success score? Contact Menke & Associates to find out what employee ownership could mean for your business.
Menke & Associates, Inc. has helped over 3,500 companies successfully transition to employee ownership. Our holistic ESOP approach enables a positive outcome for the company, its employees and its shareholders. We believe ownership is powerful.
