Couche-Tard Loses 315 Texas Circle K Stores

Globe and Mail:

Alimentation Couche-Tard Inc. is usually known for racking up convenience store acquisitions at a blistering pace as it pursues an ambitious North American expansion drive. But the Laval, Que., convenience store king is experiencing a rare setback these days: A loss of about 315 Circle K stores in the U.S. after a Texas licensee decided not to renew its agreement.

Susser Holdings Corp. of Corpus Christi, Tex., says in U.S. securities filings that it has decided to let its licensing agreement with Couche-Tard subsidiary TMC Franchise Corp. lapse.

Susser says it came to the conclusion that the more than $3-million (U.S.) a year it was paying to TMC for the right to use the Circle K name and logo on its stores “outweighs any benefit from the licensing agreement.”

It adds that it felt its hands were tied by the licensing agreement in terms of expansion plans.”We will no longer be limited by the geographic restrictions set forth in the Circle K license agreement, which limit the markets we can operate under the Circle K brand.”

By rebranding its outlets to its proprietary “Stripes” moniker, Susser says it will have “more flexibility for future growth while enhancing our profit.”

A billboard advertising campaign to announce the switch to Stripes has the slogan: “Stripes are in (Circles are out).”

Susser is the largest independent convenience store operator in Texas; it is concentrated in South Texas, with a more limited presence in Oklahoma.