Alimentation Couche-Tard Inc. debuted its Core + More strategy, outlining a new framework to support long-term profitable growth, during its Business Strategy Update this week.
The initiative focuses on strengthening the retailer's core platforms while pursuing targeted investment opportunities. This approach is designed to amplify existing strengths, such as scale and network, while expanding into areas positioned for future growth, reported Convenience Store News sister publication Convenience Store News Canada.
"Core + More is a focused strategy that builds on our leadership in core categories while investing in the areas that will position Couche-Tard to win the customer for years to come," said Couche-Tard President and CEO Alex Miller. "By enabling it all with the capabilities, technology, data and supply chain that support our stores, we can amplify what we do best for customers today and unlock new growth for tomorrow.
"This strategy is about turning the full power of our scale, network and people into greater value for our shareholders, and I'm incredibly proud of the talent and commitment of our team as we begin this next chapter," Miller continued.
Couche-Tard's core categories, including nicotine products, beverages and fuel, remain the primary drivers of traffic across its network.
"The core is the primary drivers of our traffic today," Miller said during the strategy presentation on Feb. 11. "We are bullish on nicotine. Across our footprint, nicotine is growing, and it's growing in spaces at much higher margin profiles than traditional cigarettes. And we are a destination. It is a place we are massively outperforming the market today."
Couche-Tard seems continued momentum in beverages sales, especially in energy and functional drinks.
"Thirst is just growing. The innovation is just fantastic for us," Miller said. "What's happened in energy and functional drink — the new products, the things that are happening — that is our space. We are adding cold capacity. We really feel good about our journey on thirst."
On the fuel front, he acknowledged that traditional gasoline demand is expected to decline over time, but added that Couche-Tard is positioned to benefit from the transition.
"We know liquid fuel demand in our core markets is going to slowly decline," he said. "But we are taking share in liquid fuel, and you put EV on top of that, we are actually growing that mobility pillar at a nice rate," Miller said. "The great thing about our EV customers is they like our stores, and they like the other things that we do, and it is driving increased trips to our sites."
Read the full story at Alimentation Couche-Tard Lays Out Growth Strategy | Convenience Store News
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