Middle East: Circle K Plans Growth in Persian Gulf
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Wednesday, 30 November 2011 |
Canada’s Alimentation Couche-Tard, owner of Circle K, is planning to bring the chain to the Persian gulf. According to The National, the company plans to open 100 stores in the UAE over the next four years, while it has also signed a leaving deal in Saudi Arabia that could result in 400 new convenience stores and fuel service stations opening under the Circle K brand.
Fahmi Al Shawa (pictured), Managing Director of Circle K’s franchise partner Convenience Arabia, said that the chain could benefit in what he described as a “seriously underdeveloped” UAE market. "There are more than 9,000 traditional, independent grocers in the UAE," he said. "If Circle K can get a 1% market share, that's 90 stores, but we eventually should be able to get 2% to 3% market share,” he added. The company plans to open 60 stores in Riyadh, with an option to open up 400 stores in Aldrees fuel service stations. Al Shawa told The National that the total investment in the expansion will be between $30m and $40m over the next five years.
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