The Jeddah-based investment company says it will support the growth of the US company in the Kingdom’s metropolitan regions where there are increasing opportunities for convenience store operators and out-of-home coffee
.jpg.aspx?lang=en-GB&width=700&height=525)
Circle K is one of the largest convenience brands with a coffee offer in North America | Photo credit: Circle K
Jeddah-based Alsulaiman Group has acquired the exclusive franchise rights for US convenience store chain Circle K in Saudi Arabia.
The Saudi Arabian investment company said the agreement will support the growth of the Circle K brand in the Kingdom, particularly in highly populated metropolitan areas.
Texas-based Circle K, owned by Canadian convenience retailer Alimentation Couche-Tard, currently has five stores in Saudi Arabia.
In addition to increasing its store presence in metropolitan centres, Alsulaiman Group is seeking to pilot a sub-franchising model to enable local entrepreneurs to expand Circle K’s services to the wider Saudi population.
“Under Vision 2030, Saudi Arabia is experiencing accelerated population growth and internal migration toward concentrated metropolitan areas. Therefore, there is a growing opportunity for quality convenience stores to operate in areas with high traffic, such as office towers, gas stations, airports and train stations,” said Saud Alsulaiman, CEO, Alsulaiman Group.
Saudi Vision 2030 is a strategic framework, introduced by the Saudi Arabian government, to diversify the Kingdom’s economy and reduce its dependence on oil.
Circle K is one of the largest convenience brands with a coffee offer in North America, operating approximately 9,000 stores across the US and Canada.
Alongside petrol and convenience products the company has a significant coffee offer and promotes that it serves more than 120 million cups of Rainforest Alliance-certified coffee via in-store and self-serve formats in the US every year.
Circle K also has a presence in Egypt and the UAE, operating 107 and 10 stores in each market respectively.
In September 2022, Alimentation Couche-Tard announced a franchise agreement with Millat Convenience, a subsidiary of the Johannesburg-based Millat Group, to bring Circle K to South Africa.
Founded in 1983, Alsulaiman Group also operates Swedish furniture company IKEA in Saudi Arabia and Bahrain, where it collectively manages five outlets.