South Africa’s first Circle K convenience store now open in eastern Pretoria, is a precursor to a multi-store roll out in coming months and part of a bigger forecourt deal with Puma Energy which will give access to over one hundred sites across South Africa.
This morning, Millat Convenience and Puma energy concluded an agreement that will see an accelerated roll out of Circle K stores on Puma Energy forecourts across the country.
The agreement is a clear sign of the confidence two major international brands have in South Africa’s future in the short term and could create around 2000 jobs.
The Puma Energy forecourt deal comes just weeks after Circle K owner Alimentation Couche-Tard and Millat Convenience concluded a franchise agreement to bring the global convenience store to South Africa.
The Circle K partnership grants Millat an exclusive license to develop stores in the country. Five more stores are set to open in Gauteng and North West Province in the coming weeks, including a stand-alone operation at the University of Johannesburg which will open in late January 2023.
With Puma Energy on board, Circle K has a growth platform that will allow the Circle K brand to improve the convenience store space in South Africa.
Janet Sithole, Non-Fuels Retail Manager for Africa says: “This is the start of an exciting new chapter in Puma Energy’s story in South Africa. Like Puma Energy, Circle K is known around the world for its commitment to quality and excellent customer service. This partnership aligns with our plans to create high-quality fuel and convenience outlets where customers can access all their fuel and daily shopping needs at clean, friendly and convenient retail sites.”
Puma Energy has a network of 112 retail sites across South Africa with a variety of convenience retail offerings, car washes and quick-service food outlets.
The first Pretoria site is located at the busy Puma Energy facility in Moreleta Park, close to Menlyn, and footfall has already exceeded initial expectations.
Hamza Farooqui, CEO, Millat Group says: “Unlike other forecourt operations, where petrol often takes precedence over stores, we have inverted the model with the intention of our outlets becoming sought-after destinations in themselves. Apart from a welcoming ambiance and décor, we will offer a variety of freshly made (on-site), chef-inspired food as well as several new imported candy and confectionary brands.”
Local Circle K stores will also employ in-house baristas to offer a superior coffee programme.
Farooqui says filling station forecourts have become a major new driver of retail commerce and discerning consumers are not only looking for variety and quality, but also a better shopping experience in as short a time as possible.
To that end stores will provide comfortable clean seating areas as well as tastefully decorated, well-lit, clean washrooms.
As part of the Millat Group’s stated intention of being a jobs enabler in South Africa, the Circle K operation will provide employment and training as well as being a boost to the retail industry supply chain.
Notes Farooqui: “Bringing Circle K to South Africa aligns with our concept of introducing customer-centric brands, experiences, and compelling food service offerings. This further speaks to our strategy to play within the leisure, hospitality, food service and convenience segments. As a brand, Circle K is an acknowledged leader in the convenience retail sector, and this deal will allow for disruption in this space as we are a company with extensive expertise in every facet of convenience and retail.”
The Millat Group is a South African private equity firm with a private portfolio of assets within the tourism and hospitality sector.
About the Millat Group
The group is a private family office that uses its own balance sheet to bring entrepreneurial solutions to complex commercial problems. The group has a strong investment portfolio which includes real estate, direct investments, and private equity holdings. It owns flagship assets in South Africa and internationally. It deploys its capital and know-how on assets and sectors it deeply understands. Its sectors of expertise include real estate, hospitality, technology, and financial services.
For more information, please visit www.millatinvest.com
About Puma Energy
Puma Energy is a leading global energy business, safely providing energy across six continents. Our downstream business segments include: fuels, aviation, lubricants, LPG and bitumen. We have 1,998 fuel retail sites and we are present at 109 airports around the world. Our purpose is energising communities to help drive growth and prosperity by sustainably serving our customers’ needs. Across Africa, Puma Energy operates in 15 countries overall and has a retail network of 687 outlets in 13 countries.
Puma Energy supplies premium diesel, petrol and lubricants to 112 retail sites across South Africa. Since Puma Energy entered South Africa in 2015 it has been adding new stores every year. Puma Energy retail sites have a variety of convenience retail offerings such as, OK Express and other unbranded stores, car washes and fast food outlets. Puma Energy indirectly employs 1,665 in its retail business in South Africa.
For further information visit: www.pumaenergy.com
About Alimentation Couche-Tard Inc.
Couche-Tard is a global leader in convenience and mobility, operating in 24 countries and territories, with more than 14,300 stores, of which approximately 10,900 offer road transportation fuel. With its well-known Couche-Tard and Circle K banners, it is one of the largest independent convenience store operators in the United States and it is a leader in the convenience store industry and road transportation fuel retail in Canada, Scandinavia, the Baltics, as well as in Ireland. It also has an important presence in Poland and Hong Kong Special Administrative Region of the People’s Republic of China. Approximately 122,000 people are employed throughout its network.
For more information about Circle K, please visit www.circlek.com. For more information about Alimentation Couche-Tard, please visit https://corpo.couche-tard.com/en/
RELEASE ENDS
Media Enquires
Altaaf Kazi – Millat Investments: VP Corporate Communications
altaaf@millatinvest.com or +27 82 553 9595
