Canadian-owned forecourts group Circle K is seeking to open standalone convenience retail outlets in cities around Ireland after striking its first such deal in Dublin.
Circle K, which is owned by listed group Alimentation Couche-Tard, is moving into the Irish town and city centre convenience retailing for the first time with the acquisition of 10 high-profile Dublin stores from the Griffin Group, which currently operates them under the Londis banner.
Subject to clearance from competition regulators, the 10 stores will be rebranded as Circle K outlets “in coming months” as the group eyes expansion outside the Irish fuel forecourts market.
Circle K operates standalone retail networks in Hong Kong and Canada.
It is buying outlets currently operating as Londis on Grafton Street in the city centre, two on O'Connell Street, Westmoreland Street, College Green, Nassau Street, two in west Dublin and one in Sandyford, which also includes a coffee shop.
The deal includes several in-store food franchises for Subway and Chopped. The 200 staff employed in the selected Griffin stores will move to Circle K.
Circle K has about 420 garage forecourts in Ireland, including deals with independent forecourt owners and an extensive network operated by the company itself.
The group says it has invested more than €150 million in the Irish market since it took over the network in 2016. It was previously Topaz, owned by Denis O’Brien.
"We see great potential for our offering on the high street," said Gordon Lawlor, managing director of Circle K Ireland. "We will continue looking at opportunities to expand our footprint in Ireland within our forecourt network, as well as any further opportunities we see in high footfall areas."
Mr Lawlor said the group first started thinking about opening standalone outlets in Ireland three years ago. It decided to wait for an acquisition opportunity rather than opening stores “one by one”.
Replace the brand
If it gets clearance for the deal from the Competition and Consumer Protection Commission, Mr Lawlor says it will replace the brand over the door with its Circle K moniker within weeks.
He said the group plans to install its closed-cash system which cuts out cash handling by staff, with customers interacting with machines at the till if they pay by notes and coins.
"I'd love to explore opportunities in other cities such as Cork, Galway, Limerick and Waterford, " he said.
Circle K hopes to add about 20 retail locations to its Irish network in coming years, including standalone outlets and new forecourt locations.
“There is more consolidation to come in the forecourts sector, and we want to play our part in that,” said Mr Lawlor.
The convenience retailing market in the Republic is extremely competitive, with major brands such as BWG's Spar, Mace and Londis, and Musgrave's Centra all well embedded.
“The forecourts sector is every bit as competitive. We know what we’re getting into,” said Mr Lawlor.
