Circle K: US C-Store Asset Quality & Unit Growth
Former VP at Circle K
inpractise.com/articles/circle-k-us-asset-quality-and-store-growth
Circle K: US C-Store Asset Quality & Unit Growth(November 2, 2022)
Former VP at Circle K
The executive has over 35-years experience in the c-store industry and was responsible for real estate at Circle K, reporting to Alain Bouchard.
Interview Transcript
This is a snippet of the transcript, sign up to read more.
Looking at the US market today, Couche-Tard has roughly 5% market share? They have 9,000 stores in North America, 7,000 in the US yet there is still over 150,000 total stores in the US. How do you see the market structure evolving, over the next 10 years?
It is different throughout the markets. In some, you have fairly large jobbers. In Florida, for example, we have one jobber that probably has 800 stores that nobody has ever heard of. There are other operators, like the QuikTrips, the RaceTracs and the EGs of the world that have built regional presence where they have anywhere from 500 to 2,000 stores. Those players are still in the market, as well.
This is a snippet of the transcript, sign up to read more.
What do you mean by good and not good? How do you define that?
We usually write the stores as either an A, which would be larger format, big gas presence, large lot, well lit, more modern; or a B store, which is maybe a newer store format, maybe 10 or 15 years ago, where it’s a 3,000 square foot building, with four or five pumps. The new ones would be 5,000 square feet, with eight to 10 pumps. Then you would get a C class, which would probably be the 1970s version, where it’s 2,000 to 2,400 square feet or maybe an under-canopy, with one or two pumps out front.
This is a snippet of the transcript, sign up to read more.
What portion of Circle K’s 7,000 stores do you think are A, B and C formats?
It’s probably 25% A stores, probably around 40ish for Bs and the rest are Cs or Ds.
This is a snippet of the transcript, sign up to read more.
Related Content
Copyright Notice
This document may not be reproduced, distributed, or transmitted in any form or by any means including resale of any part, unauthorised distribution to a third party or other electronic methods, without the prior written permission of IP 1 Ltd.
IP 1 Ltd, trading as In Practise (herein referred to as "IP") is a company registered in England and Wales and is not a registered investment advisor or broker-dealer, and is not licensed nor qualified to provide investment advice.
In Practise reserves all copyright, intellectual and other property rights in the Content. The information published in this transcript (“Content”) is for information purposes only and should not be used as the sole basis for making any investment decision. Information provided by IP is to be used as an educational tool and nothing in this Content shall be construed as an offer, recommendation or solicitation regarding any financial product, service or management of investments or securities. The views of the executive expressed in the Content are those of the expert and they are not endorsed by, nor do they represent the opinion of In Practise. In Practise makes no representations and accepts no liability for the Content or for any errors, omissions, or inaccuracies will in no way be held liable for any potential or actual violations of laws, including without limitation any securities laws, based on Information sent to you by In Practise.
© 2023 IP 1 Ltd. All rights reserved.