AKRON, Ohio -- Noting a confidence in growth opportunities, Brian Hannasch, senior vice president of West North America for Circle K, announced to team leaders late last week the splitting of its Midwest business unit into two divisions, a move designed to support a continuing pattern of growth in the region.
In a letter to team members that was obtained by CSP Daily News and reported yesterday in a news flash, Hannasch said the move would position the region for growth and help maintain the integrity of our business model, which calls for us [image-nocss] to remain close to our stores and our customers.
One unit will be called Great Lakes and will include Ohio, Michigan and Pennsylvania with support offices in Akron, Ohio. Circle K veteran Paul Rodriguez will head up this unit. Kentucky, Indiana, Illinois and Iowa will make up the new Midwest business unit.
Hannasch was unavailable for direct comment at press time.
For industry observers, the move bolsters the chain's intent to grow within the Midwest. From a mergers and acquisition perspective, dividing the business units means they will have people focusing on smaller areas, Tom Kelso, managing director for Baltimore-based Matrix Capital Markets Group Inc., told CSP Daily News.
Others believe the move is a signal of a growing competitiveness within the Circle K chain itself. Another industry analyst who preferred to remain anonymous said as the business units attain greater autonomy, that individualism is inspiring a healthy competition between the regions.
Recent comments by the head of Circle K's parent company, Laval, Quebec-based Alimentation Couche-Tard Inc., support the idea that the regions, and more specifically the company's eight (soon to be nine) separate business units are acting more independently as time passes.
In his letter to team members, Hannasch said Rodriguez's appointment to vice president of the Great Lakes business unit will be effective December 1, at which time he will assume responsibility for unit operations. In fiscal 2007-2008, Rodriguez will develop his operations team, with the Midwest business unit continuing to support non-operational functions for the two units.
The current Midwest unit operates 620 corporate sites, 102 dealer sites and 60 franchise locations with annual merchandise sales of more than $650 million.
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