Circle K has signed lease agreements for three distribution centers in Minnesota, Ohio and Missouri “as part of a strategic effort to optimize its merchandise supply chain,” according to a press release from Circle K.
A subsidiary of Alimentation Couche-Tard Inc., Circle K said that it 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, Minnesota; Lockbourne, Ohio; and Hazelwood, Missouri, 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/nicotine and other convenience items not normally supported via Direct Store Delivery,” according to Circle K.
With the addition of these three facilities, Circle K said that it will have five 3PL distribution centers (DCs) supplying more than 2,600 company-owned stores in the U.S. The company’s existing DCs 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, Sr. Vice President of Global Merchandising for Circle K, said these DCs 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 food service programs and, most importantly, help ensure we are positioned to consistently meet the evolving needs of our valued customers.”
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.