Smokers welcome! Circle K sees business in shrinking market
Posted in: UncategorizedCigarettes aren’t extinguished yet, and one of America’s biggest convenience-store chains wants to squeeze what it can from that shrinking market.
Alimentation Couche-Tard, the Canadian owner of Circle K stores, launched a “Tobacco Club” earlier this year in the U.S. that offers discounts on Marlboro packs and other products to more than 4 million patrons who sign in with their mobile number. The company also expanded distribution of its own cigarette label to recently acquired chains, giving more customers a lower-priced alternative as the cost to light up climbs with tax increases on tobacco.
The number of cigarette smokers has been dwindling in the U.S., and many retailers — including Couche-Tard — have their eyes on the burgeoning market for legal cannabis products. Yet, the convenience-store giant still wants to boost its share among the thinning ranks of the tobacco crowd, who are potential clients for high-margin products such as sandwiches. The booming market for products such as e-cigarettes also helps.
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