Circle K’s Inner Circle now in more than 30 states

Dive Brief:

Alimentation Couche-Tard has added almost 5 million fully enrolled U.S. members to its Inner Circle loyalty program that launched last year, CEO Brian Hannasch said during the company’s fiscal third quarter earnings call.
The tiered program, which upgrades customers to a second level once they spend $500 at Circle K stores, has rolled out to more than 4,000 locations in more than 30 states so far according to Hannasch.
Inner Circle offers discounts on food, fuel and more as the convenience retailer looks to appeal to price-conscious consumers.

Dive Insight:

Alimentation Couche-Tard saw the number of both registrations and full enrollments to the program double in Q3. It’s looking to Inner Circle and its private label line to provide “meaningful rewards and compelling value especially for more cash strapped cost consumers that are out there,” Hannasch said.

The company noted that in the third quarter, it saw strain especially among lower-income customers, with EBT or SNAP volume revenues down 40% year over year. That’s resulting in trip consolidation, Hannasch noted. Overall same-store U.S. sales were down 1.5%. However, increasing Inner Circle membership might help in future quarters.

“We're seeing that our highest penetration sites that have more than 25% of the transactions coming from Inner Circle are outperforming our non-loyalty sites,” said Hannasch. “And that these loyal customers are visiting our locations more frequently and with a higher basket.”

Alimentation Couche-Tard is focused on continuing to roll this advanced rewards program out to the rest of its U.S. footprint.

Other notable updates from the call:

Alimentation Couche-Tard is also on track to build up to 100 new-to-industry stores in North America during its fiscal year 2024, which ends in May, according to the call. This puts the convenience retailer on pace to hit its goal of building 500 new stores by 2028.
The company has been investing in training and engagement for its employees, resulting in a “notable improvement in turnover, both in our associate and manager rank” according to Hannasch.