Market News

Couche-Tarde Regroups After Katrina

Some 200 of Alimentation Couche-Tarde Inc.'s employees are still unaccounted for, following Hurricane Katrina. The convenience store giant, which runs 4,861 stores across Canada and the United States, was forced to close 34 Circle K stores that were destroyed or seriously damaged (in Alabama, Louisiana and Mississippi) in the storm. In addition, many stores that sell gas were hit with shortages. Chief executive Alain Bouchard said the company would continue to pay uprooted workers, and will offer employees at its 11 New Orleans-area Circle K locations destroyed by Katrina the option of relocating. It isn't the first time Couche-Tarde has taken a big hit from Mother Nature. Last year, the company lost $3.5-million in pretax profit when four hurricanes struck Florida, resulting in the temporary closure of 34 stores and damage to 250 others. The company's stores and merchandise are insured, but not lost sales. Just the same, Couche-Tarde anticipates mitigating sales increases in places such as Baton Rouge, La., where refugees have arrived en masse. Source: Canadian Grocer E-Newsletter, Sept. 23, 2005.