SOUTH AFRICA – Millat Convenience, a subsidiary of Millat Group – a South Africa based Private Equity Firm, has announced that it will be bringing convenience retail brand Circle K to South Africa – with its first store set to open in Gauteng in October 2022.

Millat has entered into a Master Licence Agreement with the Canada-based convenience store operator, Alimentation Couche-Tard Inc, to open and operate its subsidiary throughout the country as the exclusive licensee.

Established in 1951 in Texas, USA, Circle K was acquired in 2003 by Couche-Tard, a prominent convenience store operator headquartered in Laval, Canada.

With Circle K as its global brand, Couche-Tard’s network today consists of nearly 14,100 locations across 24 countries and territories, including approximately 1,900 franchise locations in Latin America, Africa, the Middle East, Asia and Oceania.

It is one of the largest convenience retail brands in the United States with over 7,000 outlets – second only to the 7Eleven brand.

The brand offers fresh food, hot and cold beverages and other convenience products, as well as fuel stations and electric vehicle charging.

Hamza Farooqui, CEO of Millat Group, said his company has worked extensively over the past year to lay the foundation for Circle K’s introduction to the South Africa market:

He revealed that they are currently engaging oil majors and property management companies in South Africa to ensure that they have a strong base to begin Circle K’s presence in the country.

“This deal shows Millat’s strength in bringing willing international brands into South Africa to invest, creating job opportunities and economic growth.

“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.

“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,” said Farooqui.

Circle K vice president Pat Fitzpatrick said that South Africa presents Circle K with compelling opportunities for growth as the brand continues to expand in global markets.

“Millat Group understands the South African consumer, has a strong track record of building retail, hospitality, and food service brands, and has exciting plans for the Circle K brand.

“We are very pleased to be working with them to bring to life our mission to make our customers’ lives a little easier every day,” he said.

South Africa’s convenience retail sector is dominated by offerings at fuel station forecourts, including Engen Quick Shop, Shell Select, BP Express, Sasol Delight and Astron Energy Fresh Stop.

The sector is also increasingly being encroached upon by the larger retail brands, with Shoprite’s OK Express, Pick n Pay Express and Woolworths Food stores also making their way to forecourts across the country.

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