Convenience store retailer Circle K has signed lease agreements for three distribution centers. The three distribution centers will each average about 266,000 square feet and be located in Otsego, Minn.; Lockbourne, Ohio; and Hazelwood, Mo. They'll supply about 1,600 Circle K and Holiday stores in 14 states.
The company plans to contract out warehouse and distribution operations at these sites to third-party logistics providers with expertise in supporting convenience and other small-format retailers, reports Convenience Store News.
The additional facilities will bring to five the 3PL distribution centers supplying more than 2,600 company-owned stores in the U.S. The other two distribution facilities are in the San Antonio and Phoenix areas. In addition, the company operates and staffs a full distribution center in Laval, Quebec.
"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, reports Convenience Store News.
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.