Alimentation Couche-Tard closed the doors of around ten convenience stores and gas stations last year, in what would be one of the largest waves of closures for the retailer in quite some time in Quebec.
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“Since I have been Couche-Tard, this is the first time that I have seen so many closures,” says Guy Leroux, editor of the depquebec.com site on convenience stores.
The 11 stores closed in 2023 by Couche-Tard in Quebec dated back several years – at least two of them were former La Maisonnée convenience stores, a chain from the 1980s. Of the lot, six sold gasoline.
“I don’t know if this is the start of a trend,” said Mr. Leroux. Do they clean?”
A closed Couche-Tard convenience store on Beaubien Street in Montreal.
Photo Pierre-Paul Poulin
Network of more than 600 establishments
This industry expert emphasizes that the number of closures remains minimal compared to the number of convenience stores and gas stations operated by Couche-Tard in Quebec.
“When there are stores that perform less well, they will sometimes transform them into Provi-Soir, that is to say they will give them franchises,” explains Guy Leroux.
Note that in Quebec, two of the three closures result from expropriations linked to the tramway project.
Still according to Mr. Leroux, Couche-Tard was the only major player in the industry to close so many establishments last year. Other major convenience store and gas station operators in Quebec are Sobeys (Shell and Voisin), Metro (Servi-Express and GEM), Groupe Beaudry (Beau-soir) and Harnois (Proxi).
For several years, the total number of convenience stores and gas stations has been declining in Quebec, a situation mainly attributable to the closure of many independent establishments. There were some 5,279 convenience stores at the end of 2023 (including 2,473 with gasoline), compared to 5,353 two years earlier, according to data compiled by Mr. Leroux.
Courtesy photo
Headwinds
The specialist notes that convenience stores and gas stations are facing several headwinds, including successive increases in the minimum wage, high inflation as well as the drop in fuel and tobacco sales.
According to the Régie de l’énergie, gasoline sales, in liters, fell by 8.6% when comparing 2022 to 2019. The increase in prices, however, largely offset the decrease in volumes.
As for sales of cigarettes and related products, we can estimate their evolution by examining the revenues obtained by Quebec from tobacco taxes. These went from $995 million in 2018-2019 to $635 million in 2022-2023, a drop of 36%.
“We sometimes make strategic decisions – like any retailer – to close or sell stores that no longer fit the brand direction based on size, configuration, local market strategy or other factors », Specifies Alimentation Couche-Tard in an email sent to the Journal.
In its financial disclosures, the company says it closed 205 stores globally during the 24 weeks ending October 15. It has also added 94 establishments to its network.
During the same period in 2022, Couche-Tard closed 106 stores and added 307.
As of October 15, the retailer had 12,321 locations, including approximately 2,000 in Canada.
The 11 Couche-Tard closed
- 6, boul. Interprovincial, Pointe-à-la-Croix
- 900, boul. René-Lévesque West, Quebec
- 2940, boul. Laurier, Quebec
- 899, boul. Lebourgneuf, Quebec
- 5325, boul. Guillaume-Couture, Lévis
- 3250, boul. Henri-Bourassa East, Montreal
- 3985, rue Beaubien Est, Montreal
- 8275 boul. Saint-Laurent, Montreal
- 2520, boul. Curé-Labelle, Laval
- 3010, chemin d’Oka, Ste-Marthe-sur-le-Lac
- 872, boul. Curé-Poirier West, Longueuil