Circle K to open three Midwest distribution centers
Circle K has signed lease agreements for three distribution centers in three different Midwestern states.
The convenience retailer, a subsidiary of Alimentation Couche-Tard, will open the facilities in Otsego, Minn., Lockbourne, Ohio, and Hazelwood, Mo. The centers average approximately 266,000 square feet. and supply approximately 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.
The 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. Circle K expects to award 3PL contracts before the end of 2024 and says the new distribution centers are opening as part of a strategic effort to optimize its merchandise supply chain.
[READ MORE: Couche-Tard supports planning with AI]
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 U.S. The company’s existing 3PL 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," said Trey Powell, senior VP of global merchandising, Circle K. "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."
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 Companies US, Inc., is supporting this project as Circle K’s national construction and architectural partner.
Circle K is a subsidiary of Alimentation Couche-Tard, which operates in 29 countries and territories. With its Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the U.S.
