U.S. same-store merchandise sales grew by 1.7% during the fiscal first quarter, falling short of the company's 2% to 3% target. Chief Executive Alex Miller confirmed that demand for confectionery and salty snacks softened compared to the previous quarter. Whether this shift represents a permanent change in shopping habits remains unclear, as Miller admitted he does not yet know if the trend is transitory.
In section Market Quotes
GLP-1 drugs weigh on Circle K snack sales
The aisles of convenience stores are changing as shoppers reach for fewer chips and candy bars. Alimentation Couche-Tard, the parent company of Circle K, reports that the rise of weight-loss drugs like Ozempic and Wegovy is directly curbing consumer appetites for high-sugar and high-carbohydrate impulse purchases in the United States.
To counter the slump, the company is reallocating shelf space, moving away from traditional sweets toward protein-focused and functional snacks. This pivot aligns with a broader strategy to expand fresh food offerings, which now account for 13.2% of total merchandise sales. Despite the snacking decline, the company reported total quarterly revenue of $21.7 billion, exceeding Wall Street expectations of $20.86 billion. Following the report, shares slipped 3% to 81.70 Canadian dollars.
Comments (0)
No comments yet. Be the first!