Dive Brief:

• Circle K will launch a fuel loyalty program as part of its larger mission to invest more in its own brand, Brian Hannasch, president and CEO of Alimentation Couche-Tard, parent company for Circle K, said during the company’s fiscal Q1 2023 earnings call on Aug. 31.
• The fuel loyalty program is being piloted at Circle K stores in Goldsboro, South Carolina, and Denmark.
• The announcement comes at the heels of a strong quarter for fuel for Circle K, during which its U.S. fuel margins increased by over 12 cents per gallon, despite volumes decreasing by 4% amid inflation.

Dive Insight:

It appears Circle K isn’t satisfied with its current fuel loyalty program Easy Pay. 

“We do not have a great loyalty program in place for fuel,” said Hannasch during the earnings call.

Circle K’s Easy Pay lets members save 30 cents per gallon on their first 100 gallons purchased and 10 cents on every gallon moving forward. Loyalty members earn 10 points per gallon of gas purchased and earn $1 back for every 1,000 points. Members also receive various offers and rewards and are entered into sweepstakes as part of the program.

Its new program, which will help Circle K reward customers on fuel and merchandise, has been well received so far, Hannasch said. The company is currently working with its point-of-sale provider to get the code right to expand the new loyalty program by the end of 2022.

“When I think upside, the Circle K brand is our upside,” Hannasch said. “We've rapidly rebranded. Now, it's time to invest in that brand in a smart fashion, drive consumer awareness, drive consumer loyalty. ... While we’re preparing to get that loyalty program out, we’re going to do some tactical guerilla-type things to make sure that the awareness of the Circle K brand continues to grow.”

One tactic was its “Circle K Fuel Day” sale when the retailer offered 40 cents off per gallon of its branded fuel on Sept. 1 as part of a Labor Day promotion. The sale also kicked off a month of deals inside its stores, per the announcement. 

Although Circle K saw profitable fuel margins across all its platforms during the recent period of high inflation, the company is hoping overall volumes improve in the near future.

“As we look through to next quarter, we’re cautiously optimistic retail prices are coming down and hope to see volume trends improve,” Hannasch said.