Circle K Stores Will Get New Look, Fresh Food

(Friday, July 27, 2007) - Circle K stores are making it possible for time-crunched customers to gas up their cars and eat a meal in one stop. The Phoenix-based company is in the midst of overhauling most of its 550 Arizona stores.
Changes include architectural improvements, interior renovations and a wider product selection, which will include ready-to-eat food such as sandwiches, fruit cups and salads.
Larry Brueggemier, the company's director of marketing, said the changes are necessary to stay competitive.
He said that about 80 percent of the company's stores will incorporate the new look and format. He expects the overhauls to be finished in about four years.
Company officials would not disclose the cost of the upgrades, but Brueggemier said they have made changes in about 180 stores.
Mindy McBain, a writer for the industry trade journal the Shelby Report, said it is necessary for gas stations to evolve with the shifting demands of the public, which now wants more convenient and healthy food.
McBain said the looming arrival of Tesco is one major catalyst behind this trend..
The United Kingdom-based retailer plans to start carpeting the Valley with its Fresh & Easy Neighborhood Markets later this year.
Higher gas prices, dwindling tobacco revenue and stiff competition from dollar stores and major drugstore chains, which are beginning to offer more groceries, add to the pressure on convenience markets.
"So the next best thing to do is to go to the higher-margin items," McBain said, meaning food and beverages.
McBain said Circle K officials may have to work to overcome some initial resistance from customers who are turned off by the thought of eating fresh food from a convenience store or gas station.

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