Last year, Circle K acquired 10 Griffin Group convenience stores across Dublin, most of which were in coveted city centre locations. It was an unexpected step onto the High Street for the forecourt giant which is well known globally for its fuel and convenience store.

But senior director of retail operations for dealer & franchise Derek Nolan insists the company is in no danger of forgetting its roots, despite its continued interest in the High Street and rules out a similar move in Northern Ireland any time soon.

“This is an important and exciting development with Circle K, but it’s important to note that we remain hugely committed to fuel retailing and our network of service stations throughout the island of Ireland,” he tells NR.

Fast growth

Derek’s own area of the business – the dealer and franchise network – is growing quickly, with 243 sites across the island of Ireland where he works directly with independent retail partners.

“We’ve brought 15 new sites to the dealer network over the last 15 months. Our dealer partners look to the Circle K model as to what the future is going to look like, and an example of that would be around electrification and fuel quality,” Derek says.

“We have more than 14,000 stations globally and that gives us a good sound basis of understanding of the current market and what the future looks like.

“We currently have 49 dealer partners in Northern Ireland and we grew it by eight dealer partners last year. We’ve already seen another new site join since May, so watch this space because Northern Ireland is still a big area of opportunity for us.

Recent highlights

“One big highlight recently was the Musgrave Marketplace deal which was a big opportunity for us – it was a big statement for Circle K in Northern Ireland that we went from five Musgrave sites to now 12 overnight.

“Musgrave are investing in a high number of these sites and we’re excited to be part of the big renovation at the site in Portstewart.

“Our dealer partners are looking for the same things in Northern Ireland and the Republic – they’re looking for innovation. they’re looking for certainty of product. Fuel quality is a big part of our offer and that’s what Circle K brings.”

Derek has been in retail ever since leaving school – yet there can’t be many in the forecourt industry whose resume can boast numerous encounters with A-list celebrities, including Tom Cruise and Mark Wahlberg.

Starting as a 16-year-old at Quinnsworth, he moved up the ranks to become head of the retail support office at Tesco before becoming retail director across Odeon Cinema’s 123 sites in the UK and Ireland.

Transition phase

Six years ago, Derek made the leap to what was then Topaz.

“I joined just after the acquisition when they were transitioning from Topaz to Circle K and they wanted to bring the global brand into Ireland – so that was a massive attraction.

“It was all around major transition and being able to bring a new way of working into the company – who wouldn’t want to be part of 420 sites rebranding?

“The core part of my role now is setting a clear strategic map of where we want to grow as a channel, but the area I most enjoy is getting out with the team and speaking with our customers and seeing the team achieve its short and long term goals.”

One of Circle K’s key strengths is that it’s a globally recognised brand with a well-established record of delivering excellence, Derek says.

Global experience

“The key part for us is that we’re able to bring that global experience and insight into an existing local market,” he says.

“In Circle K everything comes back to making our customers’ lives easier every day, so we need to adapt to meet their needs, to deliver products and services and show leadership in areas such as electrification and sustainability

“We have led the way in developing next generation fuel, gourmet coffee and a wide range of high quality food options and across the island of Ireland we are the largest and most advanced network of service stations with longstanding ties to communities across Ireland.”

Circle K has evolved from a fuel retailer that sold convenience to a retailer that sells fuel.

Listening to customers

“We’ve really led the way in developing high quality fresh food on the go, but we pride ourselves on listening to the customers. Customers’ behaviours have changed and will change and we’re adapting to what those tastes and changes are into the future,” Derek says.

“I think a key area where we are leading is around technology and frictionless – we’re looking at what technology is needed, whether that’s to eliminate queueing at the front of the shop or just making life easier for the customer on the forecourt.

“We will be introducing mobile pay in the future – we already have Pay at Wash, so where we have wash machines you have the ability to pay without getting out of your car, for example – and that’s something we’ve just introduced this year.

Net zero

Circle K also prides itself on its leadership in sustainability and the net zero transition, offering the largest EV charging network in Ireland.

“We’re progressing on the introduction of E10 – that will go live in Northern Ireland in November,” Derek says.

“It’s likely that all fuel pumps will eventually be replaced by EV chargers at the front of the store, but it’s not going to happen overnight.

“We know that the forecourt of today is not the forecourt of tomorrow, and we are already leading the evolution in terms of extent of EV and alternative fuel capabilities across our network. I know we’re going to be seen as the leader in the market on this.

“We know we need to transition away from fuel products, but it’s not a case of just flipping a switch overnight. The country still relies on petrol and diesel to keep people moving – for example, delivery vehicles, bus fleets and ambulances – but EV is a core part of the future.

Moving forwards

“There are ways to make petrol and diesel products more environmentally friendly in the interim, so the introduction of E10 will have a significant impact and also we’ve got HPO for diesel and it can also have an impact in the short term.

“We’ve the most advanced EV network through our strategic partnerships with ESB, Ionity and Tesla, but the single biggest leverage that Circle K has to any of our competitors is our Norway market, where we know EVs outsell the traditional combustible engine car at the moment.

“So we’re able to use that information and will be using that information as to how we transition in Ireland. Norway are years ahead of the transition to Ireland and we’re one of the biggest EV charging networks in Norway, so that can only support how we’re going to bring it into the island of Ireland.”

While Covid had an impact on business, Circle K adapted quite well, Derek says.

Adapting to Covid

“We saw that our larger motorway sites were more challenged. But where we have residential sites – and we certainly have a lot of them in Northern Ireland – we would have seen them perform quite well through the Covid period from a residential point of view because customers’ behaviours had changed significantly during that period as they were using more of the local shops.

“We’re seeing customers reverse back out of that, not all the way but I would say customers’ behaviours have adapted back to more normal ways of doing things. But we still see challenges with commuters who are not fully back into the office and we see that in Moira, Carrickfergus, Ballymoney. We have seen it vastly improve but we haven’t seen it fully recover to pre Covid times, that’s the reality – there’s more hybrid working out there.

“But we’ve recovered, and we’re back in normal times as such.”

Fuel supply

The biggest challenge at the moment is certainty of product when it comes to fuel supply, in the wake of the Russian invasion of Ukraine, but here again Circle K is at an advantage due to its global operation, Derek says.

“Circle K has a global reach and a global footprint and we have the ability to manage through this crisis, so being part of the Circle K global network is going to give reassurance to our local dealers – they’re talking to me, but they’re also talking to a business that has 14,000 sites, both in America and across Europe,” he says.

“Russia was only a small part of our global sourcing of fuel, so as a global company we were not reliant on Russia and would have looked to increase our supply of fuel coming from other parts of the world, whether that was America, the refineries in the UK or other parts of the world.

“But there remains a high level of volatility within the global market and this is driven by stronger fuel demand post Covid and the realignment of fuel sourcing following the Russian invasion of Ukraine. So as a result we are likely to see a continuation of fuel price fluctuations in the future wholesale market.

Volatility

“It’s important to point out that this volatility is something we’ve never experienced, and it’s twofold – it’s the post Covid recovery and it’s the Russian invasion – and the other point is there are further sanctions on Russian energy supply coming into effect in January 2023 so we are likely to see even further volatility.

“But it’s not just fuel prices, it’s everything, it’s the cost of living as a whole that has really suffered. We will see consumer spend contract – that’s going to be obvious – but fuel is not sitting out there on its own.”

Derek says his wish list for the future centres on growth, innovation and making things easier for the customers.

And his priority is to continue listening to Circle K’s independent dealer partners: “They’re in the local communities, and as Circle K we have to work with and listen to them.

“That’s what keeps us relevant and consistent, and keeps us able to adapt for the future.

Adapting to change

“There’s no doubt we’re going to be going through the single biggest transition period of our industry over the next number of years.

“But calling out the importance of our dealer partners is massive for me. They’re not shy about giving you information about what’s working and what’s not working and it’s important we listen to that. We’re lucky to have that.

“When you’re company owned, you can be very focused internally, whereas when you’re working with dealer partners it gives you a great insight into what’s happening in the local markets.”

To read the full feature in Neighbourhood Retailer, click HERE.

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Anyone who walks into the foyer of the beautiful new Craig’s Costcutter at Crescent Link in the Waterside will immediately be struck by the spectacular lobby space with its tractor centrepiece.

So popular has it been that many children – and even some adults – have been coming along to take selfies beside the machine.

But what they may not realise is that the tractor – and the shop itself – is a tribute to the man who dreamed up the plans for the eye-catching forecourt.

Andrew Craig says the family started planning the store around six years ago when his late father David was still alive, and he and his siblings Allison, Suzanne, David and Steven, and mother Corinne carried on with the plan after his death.

“Our father started planning it and then he passed away in November 2017. We had the land at that point and we were building the shop, but we’ve slightly changed the design of the shop a bit,” Andrew says.

Tractor centrepiece

“The first tractor my father bought was that Ford 4000. We were doing it up when he was living – he was looking it done up – and then when he passed it was nowhere near finished.

“So then we decided to do it up and do something with it in the shop. I was thinking of maybe putting it outside or whatever, maybe with glass round it, but then the architects came up with the idea of putting it inside the shop.

“So we sent her away and got her fully done up, rather than just sitting in a shed, and we just put it on there.

“The architect had said you could put it there at the deli and make a queue right round it, with the impact as you go into the shop. It’s sitting up on a wee plinth, just as you come in – it’s straight in front of you and then the deli is wrapped around it.

“We’ve had ones taking photos of themselves, sitting on top of it and climbing all around it!”

Family history

The late David Craig was originally a farmer, but in the late 1980s he started selling some potatoes and fruit at the end of his lane, before moving the operation into a Portakabin.

Andrew takes up the story of how his dad made the decision to embark on a career in retail: “There was a boy selling at the end of the lane where my father would have turned in with tractors and trailers, and he said to him ‘Look, you wouldn’t mind going over to the layby at the other side of the road as we’ve big tractors and trailers to get in here’. But he was for staying, so that’s why my father started selling fruit and veg right beside him!

“At the start, it was mainly spuds, and then it was spuds and strawberries from the cart. And then he went into a wee Portakabin – the majority of it was spuds and anything my father grew, and then we were just getting some veg in, and added eggs and it just grew from there and he started selling coal..

“We’re actually a fuel business now and we deliver coal and oil to people’s houses.”

Evolving store

The first bricks and mortar shop was built in the early 1990s, and then its successor was built on the current site in 2008, Andrew says.

“When we started off, fruit and veg were the main things that we sold, and then fuel. When the new shop opened in 2008, that was the first time we had a deli. That shop was a third of the size of the current one, so probably 150 or 160 square metres,” he says.

“It was the standard things – chicken curry and chips, stews, lasagnes, sandwiches, sausage rolls, fries. It was a good size of a deli and they were making all of their own food from scratch.

“I remember my father asking me about putting a deli in when we were out and about, and I said if you go in the shops now, that’s what you’re starting to see.

“We were selling definitely a lot more sweets then and confectionery and that sort of side of the shop in 2008. The difference from that shop to this shop – it’s now three times the scale, and we’ve an off licence which we started a year and a half before we finished that shop. Then in the new shop as well, we have a new petrol station.”

New build

Building the new shop involved a fair bit of disruption. The old shop sat on what is now the car park, so the new shop was built behind it and the old shop was ultimately demolished to create that parking space.

The Crescent Link where the shop sits is now a dual carriageway and attracts a lot of passing trade, but was a single carriageway up until 2006/7.

Andrew says: “It comes off the Foyle Bridge and it would take you up to Altnaglevin then heading to Belfast. There are a lot of houses around it too, we’re right on the outskirts of Kilfennan, and 200-300 houses have been built nearly right beside us now on the other side of that dual carriageway.

“So we’re both types of site, if you know what I mean. We get a lot of regulars but you also get a lot of ones who are passing and just call in.

“My father always said we were green to it when we built that other shop and we just didn’t build it big enough – it wasn’t fit for purpose for the site and the traffic we had and the houses we had around it.

“So once we built it, we were trying to get the land behind us to build a new shop. We just wanted a bigger shop and we were trying to go for a petrol station as well and just got a good architect to design it and went on from there.”

Lockdown launch

The new 500 square metre shop opened on St Patrick’s Day last year when the lockdown was still in place.

“It’s your standard shop, deli, off licence, big fruit and veg section, all your standard confectioneries, wee post office in the corner, a wee ice cream counter,” Andrew says.

“We’re actually making our own ice cream now too called Daisy Moos, that was just done for that shop. There’s a bigger range of deli food.

“When we opened, there was a lot of interest – there were queues outside the door and we had to have someone on the door nearly steady. Basically the first few weeks were just crazy – everybody wanted out of the house to look at something!

“It was tricky for everybody, you just had to keep on putting people on the door.”

Pandemic restrictions

At the time the shop was dealing with the pandemic restrictions and offering deliveries to its most vulnerable customers.

“We had only opened that shop and it was probably 9-10 months after the pandemic started, so there was a month when we were completely closed,” Andrew says.

On the forecourt itself are two double pumps selling petrol, diesel and kerosene.

“We don’t sell any Ad Blue at the minute, but we’ll probably get a stand on site. We haven’t actually got that sorted yet, we’re just trying to get everything sorted at the minute,” Andrew says.

“There are two car washes at the back – just a pull up self service, the power hose and the foam brush.”

As with many forecourts at the moment, there were a few comments from customers about the rising fuel prices but it wasn’t too bad, he says.

“Everybody knows it’s just the way it is at the moment – there’s just nothing we can do. It nearly hit the £2 a litre mark … Especially when kerosene got dear – when it starts hitting near a £1 a litre for heating someone’s home, it’s not easy.”

Stunning design

Most of the interior and exterior forecourt design was carried out by Ashley Lamont of Whittaker + Watt and Andrew is full of praise for the new look he has devised.

“It’s very open, glass fronted floor to ceiling, very light and airy. When you’re inside it’s very nice, with lots of space even in between rows of shelves. The difference between that and our old shop is night and day,” he says.

“We would have had a lot of regulars anyway but there’s a lot of people coming in who really  love the shop. It’s hard to explain the difference between old and new but there’s a lot more space and it’s all just a lot easier.

“The old shop was slightly further up, but you’d see the new shop from the road a lot quicker, especially at night time with the lights on.”

Innovative approach

Ashley says the Craig family had originally decided upon a small extension to their existing store, but when he first saw the site it was clear that there was considerable space available at the rear.

“Most of the difficulty with retail refurbishments is trying to extend or renovate while trying to keep the business trading, because nobody wants to lose the sales due to their refurbishment work,” he says.

“In this case we actually built a brand new store at the back of the site. We had originally engaged with David Craig who unfortunately during the early design stages passed away and we worked with his sons and daughters to further develop the scheme.

“Craig’s Costcutter is a modern store with a dual carriageway setting in which you need to attract the passing customer’s attention within seven seconds.. So the facade had to be taller, it had to have more glass and more LED lighting to try and create a better thinking time, so the traffic could slow down and pull into the site.  That was a technique that was used on the outside.”

Ashley is proud of the unusual lobby with its tractor centrepiece, saying it actually became a good footfall driver for the new business.

“It was a nice nod to the original family members and a nice gesture for the new building,” he says.

To read the full feature in Neighbourhood Retailer, click HERE.

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The new 500 square metre shop, built to the rear of the older store,  opened on St Patrick’s Day last year when the lockdown was still in place.

“When we opened, there was a lot of interest – there were queues outside the door and we had to have someone on the door nearly steady. Basically the first few weeks were just crazy – everybody wanted out of the house to look at something!” Andrew Craig says.

“It was tricky for everybody, you just had to keep on putting people on the door.”

At the time the shop was dealing with the pandemic restrictions and offering deliveries to its most vulnerable customers.

“We had only opened that shop and it was probably 9-10 months after the pandemic started, so there was a month when we were completely closed,” Andrew says.

“It’s your standard shop, deli, off licence, big fruit and veg section, all your standard confectioneries, wee post office in the corner, a wee ice cream counter.

“We’re actually making our own ice cream now too called Daisy Moos, that was just done for that shop. There’s a bigger range of deli food.”

On the forecourt itself are two double pumps selling petrol, diesel and kerosene.

“We don’t sell any Ad Blue at the minute, but we’ll probably get a stand on site. We haven’t actually got that sorted yet, we’re just trying to get everything sorted at the minute,” Andrew says.

“There are two car washes at the back – just a pull up self service, the power hose and the foam brush.”

To read the full feature, watch out for the next edition of Neighbourhood Retailer.

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