Company News

War in Ukraine Brings Challenges for C-Store Retailers

Couche-Tard suspends operations in Russia stores, Lukoil in the crosshairs, more
Photograph: Shutterstock

CHICAGO — As the war in Ukraine nears its third week, U.S. convenience-store chains, including Circle K parent Alimentation Couche-Tard, Lukoil North America and Yesway, are reacting by distancing themselves from any Russian ties or links.

Couche-Tard Suspends Operations

On March 7, Laval, Quebec-based Couche-Tard announced it is suspending operations in its 38 c-stores in Russia and implementing plans to take care of its employees in a responsible and safe manner.

“We condemn Russia’s aggression against Ukraine and the huge human impact it is having for both Ukrainians and Russians,” said Brian Hannasch, president and CEO of Couche-Tard. “As such, we have made the decision to suspend operations. Couche-Tard has had stores in Russia for nearly three decades, and we are proud of our Russian team members and their dedicated service to local customers and communities."

In Russia, Couche-Tard has operated under its primary brand Circle K, including more than 320 employees and 38 stores located in St. Petersburg, Murmansk and Pskov.

The company has already donated more than $1.5 million to the Red Cross and has instituted a global campaign to raise further funds for the Ukrainian people, it said. Since the beginning of the crisis, local Circle K teams in Poland, the Baltics and across the European network have been supporting refugees with free fuel, food and beverages, housing and donations to children’s charities.

Lukoil in Crosshairs

Elsewhere, lawmakers in New Jersey’s largest city have voted to suspend the licenses of gas stations branded with the Lukoil name, a major oil company based in Moscow.

The Newark City Council passed a resolution 8-0 on March 2 urging the city to suspend all licenses of two local Lukoil gasoline stations to show support for Ukraine, according to a Reuters report.

According to other new reports, Lukoil franchisees across the East Coast have been subject to ridicule and boycotts, seeing sales decline since Russian forces first attacked Ukraine on Feb. 24.

Newark franchisee Roger Verma told Reuters this past week he supports Ukraine, and a suspension of his operating license would cripple his business, which employs 16 workers.

"I am baffled and confused how shutting down an American-based small business owner is sending a message to support," Verma told the news agency.

 There are about 230 Lukoil-branded gas stations in the United States, mostly franchises owned. Lukoil North America is based in Moorestown, N.J.

For its part, Lukoil, Russia’s second-largest oil company, appeared to distance itself from President Vladimir Putin on March 3 by calling for a “fast resolution” to Russia’s invasion of Ukraine, according to a New York Times report.

Removing Russian Spirits

Meanwhile, the governors of a several U.S. states, including New Hampshire, Ohio, Pennsylvania and Utah, have ordered government-run liquor stores to stop selling Russian-made vodka and distilled spirits in solidarity with the Ukrainian people.

Utah Gov. Spencer Cox, for example, instructed the state’s Department of Alcoholic Beverage Control to remove all Russian-produced and -branded products from the shelves of its retail stores, according to a New York Post report.

The effort has spilled over into c-stores, as well, many of which are removing such products voluntarily.

Fort Worth, Texas-based Yesway, for example, announced on social media March 1 that it would remove such products from its shelves, saying, “We stand with Ukraine and its people. In order to show our support for them, effective immediately we are discontinuing carrying all Russian-made alcohol in our stores.”

 

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