Circle K Inks Leases for Three Distribution Centers
CHARLOTTE, N.C. — Circle K is making a strategic effort to optimize its merchandise supply chain by signing lease agreements for three distribution centers.
The convenience store retailer plans to contract out all warehouse and distribution operations at these sites to third-party logistics (3PL) providers with expertise in supporting convenience and other small-format retailers. The company expects to award 3PL contracts before the end of the year.
Located in Otsego, Minn.; Lockbourne, Ohio; and Hazelwood, Mo., the three distribution centers average approximately 266,000 square feet. They will supply roughly 1,600 Circle K and Holiday stores in 14 states with national and private brand packaged snacks, candy, beverages, tobacco/nicotine and other convenience items not normally supported via Direct Store Delivery.
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With the addition of these three facilities, Circle K will have five 3PL distribution centers supplying more than 2,600 company-owned stores in the United States. The company's existing facilities are in the San Antonio and Phoenix areas, and supply stores in parts of Texas as well as Arizona and Nevada.
In addition, the company operates and staffs a full distribution center in Laval, Quebec, supplying Couche-Tard and Circle K sites in eastern Canada.
"We have a long, successful history of operating dedicated warehouse and distribution centers in Texas and Arizona, with the support of strong and capable 3PL partners. Expanding this hybrid distribution model into the Midwest will materially improve the control we have over key parts of the supply chain, enable further differentiation of retail programs and improve our inventory management processes and capabilities," said Trey Powell, senior vice president of global merchandising for Circle K.
"In addition, it will unlock further opportunities to optimize and enhance food service programs and, most importantly, help ensure we are positioned to consistently meet the evolving needs of our valued customers," he continued.
Circle K expects that staffing at the facilities will range from approximately 140 to 230 employees. Pending proposals from prospective logistics partners, the company anticipates starting operations in these distribution centers in late 2025.
Cushman & Wakefield represented Circle K in real estate analysis, lease negotiations and contracts. Ryan Cos. U.S. Inc., is supporting this project as Circle K's national construction and architectural partner.
Laval-based Alimentation Couche-Tard Inc. is a global leader in convenience and mobility, operating in 31 countries and territories, with more than 16,800 stores, of which approximately 13,100 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, Belgium, as well as in Ireland. It also has an important presence in Luxembourg, Germany, the Netherlands, Poland, as well as in Hong Kong Special Administrative Region of the People's Republic of China. Approximately 149,000 people are employed throughout its network.
It is No. 2 on the 2024 Convenience Store News Top 100 report.