3 Big Numbers is a weekly column that looks at a few key details from around the c-store industry.
Alimentation Couche-Tard, parent company of Circle K, saw its biggest merchandise same-store sales growth in two years last quarter, according to the company’s fiscal Q3 earnings report. While it may have been facing some easier comps as a difficult operating environment drags on, that’s still impressive.
Looking beyond that figure, however, there were some other notable milestones and accomplishments as the company seeks more growth.
In this week’s “3 Big Numbers,” we’re looking at three other ways Couche-Tard is extending its reach.
49
The number of new stores Couche-Tard added in Q3.
Overall merchandise sales for the quarter were up 8.7%, thanks in part to the company bringing new stores online. According to the earnings release, Couche-Tard acquired 12 locations during the quarter and completed construction on another 37. While all of these stores may not be open yet, the new locations are boosting Couche-Tard’s performance.
The 37 NTIs bring Couche-Tard’s total so far for this fiscal year to 80, putting it on pace to meet its goal of 100 for the annual period, said President and CEO Alex Miller in the call.
13.7 million
Number of members in Couche-Tard’s Inner Circle loyalty program.
In the spring of 2023, Couche-Tard reimagined its Inner Circle loyalty program and quickly garnered 1.2 million signups in the weeks that followed.
The company has gradually rolled out the program across the U.S., where it’s now available in all markets in the country, Miller said during the call. The result? Around 13.7 million members have joined the program.
The retailer has also seen active monthly users increase 46% year over year, and the average number of visits per member is up 7%, Miller said. The company is also keeping shoppers engaged with specials and a new look for its digital presence.
47.7 cents
Couche-Tard’s average fuel margin for the third quarter.
The retailer also continued to see strong fuel performance. While volume was roughly flat, margins were 47.7 cents per gallon on average, up over 3 cents year over year.
“We continue to gain share and outperform industry peers, supported by the size and scale of our network and greater control over our fuel supply chain that is helping us capture lower-cost sourcing opportunities, respond more effectively to market volatility and support margins,” said Miller.
Fuel and loyalty also support each other for Couche-Tard. The company’s January Fuel Day, during which members got 40 cents off gas, drove 70,000 Inner Circle signups and 80,000 reactivations.
And with the margin above the 40-cent mark on average, the company was still making a profit on those gallons.
