With the inauguration of its first location in Pretoria under its recently formed relationship with global energy company, Puma Energy and international convenience retail franchise brand, Circle K, have entered the South African market through private equity firm, Millat Group.
Alimentation Couche-Tard Inc. of Canada and Millat signed a master license agreement for Millat to open and manage its subsidiary as the sole licensee across the whole nation.
The parties hope to improve South Africa’s convenience store environment by utilizing Puma Energy’s 100+ site base around the nation.
Janet Sithole, Puma Energy non-fuels retail manager for Africa says, “This is the start of an exciting new chapter in Puma Energy’s story in South Africa. Like Puma Energy, Circle K is known around the world for its commitment to quality and excellent customer service.
“This partnership aligns with our plans to create high-quality fuel and convenience outlets where customers can access all their fuel and daily shopping needs at clean, friendly and convenient retail sites.”
Puma Energy operates a network of 112 retail locations in South Africa that include a selection of quick-service restaurants, car washes, and convenience stores.
Hamza Farooqui, CEO, Millat Group says, “Unlike other forecourt operations, where petrol often takes precedence over stores, we have inverted the model with the intention of our outlets becoming sought-after destinations in themselves.
“Apart from a welcoming ambiance and décor, we will offer a variety of freshly made (on-site), chef-inspired food as well as several new imported candy and confectionary brands.”
In-house baristas will be employed by neighborhood Circle K locations to provide a superior coffee program.
According to Farooqui, gas station forecourts have emerged as a significant new force in retail trade, and savvy shoppers are seeking not only choice and quality but also a better shopping experience in the shortest amount of time.
In order to achieve this, businesses will offer inviting, spotless lounging areas as well as artistically furnished, well-lit, spotless restrooms.
The Circle K operation will strengthen the supply chain for the retail industry while also creating jobs and providing training as part of the Millat Group’s declared goal of enabling jobs in South Africa.
Notes Farooqui, “Bringing Circle K to South Africa aligns with our concept of introducing customer-centric brands, experiences, and compelling food service offerings. This further speaks to our strategy to play within the leisure, hospitality, food service and convenience segments.
“As a brand, Circle K is an acknowledged leader in the convenience retail sector, and this deal will allow for disruption in this space as we are a company with extensive expertise in every facet of convenience and retail.”
