Circle K Stores Ropes 26 Stores
Memphis, Tenn., Circle K Stores, a subsidiary of Alimentation Couche-Tard Inc, of Laval, Canada, signed an agreement to purchase 26 stores in the Memphis region of Tennessee from BP Products North America. Should the transaction close as expected at the end of December, these assets would add sales of about $80 million to Couche-Tard’s revenues and contribute to its earnings on an annualized basis.
The 26 convenience stores currently operate under the BP banner, 18 of which are company-owned/operated, six company-owned/dealer operated and two dealer-owned/operated. All locations dispense BP branded fuel and will continue to do so. Terms were not disclosed.
7-Eleven 3Q Profit Up 55%
Dallas, Convenience store retailer 7-Eleven said its third-quarter profit rose 55% on strong merchandise and gasoline sales. For the quarter ended Sept. 30, net income rose to $68.3 million, or 53? per share, from $44.2 million, or 36? per share, a year earlier. Revenue for the quarter rose 17% to $3.8 billion, with merchandise sales up 6.7% to $2.26 billion, and gasoline sales up 38% to $1.51 billion.
Federated Details Credit Consolidation
Cincinnati, Federated Department Stores will consolidate credit-related support facilities acquired in its merger with The May Department Stores Co. These moves will improve operating efficiencies and enhance customer service by coordinating technology and capital investments, the company said.
May Co.’s Earth City credit center in St. Louis will be retained as a fourth operational hub of Federated’s Cincinnati-based Financial, Administrative and Credit Services (FACS) Group division. Earth City will join current FACS facilities in Mason, Ohio, Clearwater, Fla., and Tempe, Ariz., in servicing private label and Visa credit-card accounts for each of Federated’s department store divisions. FACS also performs a variety of nonstore services for customers and employees. In addition, Federated will expand the main FACS facility in Mason, while phasing out former May Co. credit operations in Lorain and Parma, Ohio, and Houston beginning in spring 2006.