Alimentation Couche Tard's Circle K convenience store chain plans to expand across the Persian Gulf, with 100 new stores in the United Arab Emirates in the next four years and up to 400 new gas-station outlets in Saudi Arabia
November 28, 2011
– Circle K, the second biggest convenience store chain in North America and the subsidiary of Alimentation Couche-Tard, Inc., plans to expand across the Persian Gulf, the National reported on Nov. 28.
According to the article, Circle K plans to open 100 new convenience stores in the United Arab Emirates during the next four years.
Circle K is also planning to open 60 new stores in Riyadh, Saudi Arabia, and has secured a lease that would allow it to open up to 400 new outlets at Aldrees gas stations in Saudi Arabia.
Fahmi Al Shawa, the managing director for Circle K’s franchise partner in the Gulf Cooperation Council, Convenience Arabia, said that Circle K will invest a total of $30 million to $40 million dollars in the Persian Gulf over the next five years.
Mr Al Shawa also said that, long term, the company is hoping to give shareholders a 15%-25% return on equity.
According to market intelligence firm Euromonitor International, Ltd., grocery sales in the United Arab Emirates were worth roughly Dh29.38 billion (US$8 billion) last year.
Euromonitor also reports that sales in the small grocery retail sector in the United Arab Emirates have increased by 25% during the past five years.
The primary source of this article is the National, Abu Dhabi, United Arab Emirates, on Nov. 28, 2011.