Circle K is gearing up for significant growth. Last month, the company announced its acquisition of Hutchinson Oil, a transaction that added 20 stores to the chain’s portfolio, mainly located in western Oklahoma and southern Kansas.
As Circle K ramps up its mergers and acquisition efforts, it is also developing its existing footprint, most recently in Sioux Falls, S.D.
This week, Circle K hosted three separate ribbon cutting ceremonies in the Sioux Falls area, adding to the 17 stores it already had in the community.
The sites were acquired by Circle K parent company Alimentation Couche-Tard five years ago, according to Sioux Falls Business. The sites were originally operated under the Gas Stop banner, then Holiday Stationstores until Couche-Tard bought the properties. The rebrand to Circle K, the publication reported, began about three years ago.
Square footage of the new locations range from 4,000 to 6,000 square feet. Each store opening was met with donations from Circle K — first, $1,000 to the Disabled American Veterans nonprofit, then to Sioux Falls Christian Schools.
But Circle K is not done in Sioux Falls — currently, it has building plans submitted for two additional stores, located in the Harvest Creek Neighborhood and Arrowhead Parkway.
Strategic Growth
Its growth plan was made evident by its December 2024 move, where the company signed three lease agreements for distribution centers in the Midwest. Located in Otsego, Minn., Lockbourne, Ohio, and Hazelwood, Mo., the three distribution centers average approximately 266,000 square feet. They will supply approximately 1,600 Circle K and Holiday stores in 14 states with national- and private-brand packaged snacks, candy, beverages, tobacco and other convenience items not normally supported via Direct Store Delivery.
The company’s existing distribution centers 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.
Trey Powell, senior vice president of global merchandising for Circle K, said these distribution centers will help enable a more nimble, flexible and efficient supply chain that ensures the right products are available in the right locations at the right time.
“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 Powell. “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. In addition, it will unlock further opportunities to optimize and enhance foodservice programs and, most importantly, help ensure we are positioned to consistently meet the evolving needs of our valued customers.”
