Dive Brief:
- Alimentation Couche-Tard has partnered with Relex Solutions to improve the efficiency and customer experience in its Circle K and Couche-Tard stores in the U.S. and Canada, according to a Wednesday press release.
- The supply chain and retail planning company’s AI-powered and machine learning solutions aim to enhance demand forecasting, replenishment and advanced space and floor planning.
- Circle K joins other U.S. companies like Kwik Trip and Casey’s General Stores in using Relex’s solutions to improve in-store processes and decision making.
Dive Insight:
As large c-stores deal with increasing complexity and the lingering impact of rampant inflation in the past couple years resulting in reduced customer spending, these companies turning to technology that automates tasks and promises to boost operations like ordering and replenishment.
“As we continue ... building our food culture we need to ensure availability and in-stock during our busiest times in the day,” said CEO Brian P. Hannasch during the company’s latest quarterly earnings call on Wednesday. “We're excited to be rolling out a new forecasting production tool in North America that leverages AI to accurately determine demand on the site by site and time of day.”
Use of these Relex solutions is intended to help Circle K optimize the levels of stock in its stores, make better decisions on space utilization and improve product replenishment. The c-store company hopes to optimize inventory levels and reduce out-of-stock issues.
“With RELEX, we can tailor advanced forecasting and inventory management to the needs of our individual stores and streamline our internal processes for better efficiency to provide the best quality products and a best-in-class customer experience,” said Trey Powell, senior vice president of global merchandising for Alimentation Couche-Tard, in a statement.
This is not Circle K’s first time working with the tech firm. The retailer already uses Relex’s demand forecasting and automated replenishment solutions in Europe. During a 2016 test in 1,600 stores, Relex said it was able to surpass three goals related to increasing availability, boosting assortment loyalty and reducing tobacco inventory.
Laval, Quebec-based Couche-Tard, parent company of Circle K, operates more than 5,700 c-stores in the U.S. It is the second-largest c-store company in North America behind 7-Eleven.
