Canadian Tire Corporation Limited is Canadian retail company. Founded in 1922, it is one of Canada’s largest retail chains, selling a wide range which includes automotive, sports and leisure, and home products.
Canadian Tire’s revenue by banner is composed of Canadian Tire, Petroleum, Mark’s, Financial Service and FGL Sports. Since 2012, the consolidated revenue has showed a continuously increasing trend every single year. This appearance could be attributed to four reasons. Firstly, the higher shipment is concerned in same-store sales growth at Canadian Tire and same-store sales across the Mark’s and FLG Sports banners. Secondly, because of rising volume as new sites which were added on the 400/401 highways, the retail sales in Petroleum
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has been growing. Although, price per litre was increased, the company could focus on convenience products. Process enhancements and new product offerings which have led to an increase in the average account balance also affect the revenue in Financial Service. The acquisition of PHL in August 2013 also made an impact in increasing profits to Canadian Tire. Although, the number of stores declined since 2012, retail revenue has continued to increase.
This initiative rationalized the FGL Sports corporate stores, with future growth in the network to come primarily from Sportchek banner stores. Financial Services’ gross average accounts receivable for the total portfolio has accelerated during the last three years. Especially in 2014, the firm made more measures to support Financial Service to continue its trend of strong GAAR increases.
In 2010 Canadian Tire Corporation began to focus it's business to support growth and productivity improvements in order to achieve specific financial goals and it announced several implementations that follow. These financial aspirations came to a close at the end of the fiscal year 2014.
Starting with a financial target specifically relating to Canadian Tire retail sales growth of 3 per cent to 5 per cent over the strategic plan period of 2010 to 2014, the company was only able to achieve 2.4 per cent, they attributed this short fall to consumers becoming more cautious in spending in an uncertain economy. In spite of this Canadian Tire has seen positive outcomes in the past two years due to customer's positive responses to the initial phases of the company's retail growth strategies and marketing
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programs. In 2008, Canadian Tire began it's new store concept “The Smart Store”. This store concept includes enhanced products in it's Living category with inspiring displays as well as store within a store concept of Hunting & Fishing categories. All these improvements resulted in an enriched customer experience which translated into bringing this concept across to 196 stores by end of 2014. Another significant initiative that was fruitful in 2014 came from the company's Retail Estate division CT REIT (Canadian Tire Real Estate Investment Trust).
During
2014, CT REIT completed 13 property acquisitions all of which made up approximately 1.5 million additional Square feet of gross leasable area. This then translates to long term monthly cash distributions on a tax- efficient basis for it's shareholders.
Technological advancements also provided support to the company's operations. During 2014 a new data centre in Winnipeg was implemented to provide extra support and to improve speed to the market. In 2014 a partnership with Communitech in Waterloo was made to give access to advanced talent that will provide enhanced retail experience by investing in in-store digital integration and the company will continue to invest in technology in order to remain competitive in years to come.
Another program that was completed in October 2014 is their very well known Canadian Tire Money Loyalty program. However customers can now collect electronic money using the Canadian Tire mobile app., yet another strategy to build personalized relationships with Canadian Tire loyal customers over the long
term. On October 1,2014 the company made a strategic partnership with Scotiabank by acquiring a 20 per cent interest in the company's Financial Services business for net proceeds of $476.8 million. Within the next 10 years the company has an option to sell a further 29 per cent of the Financial Services business to Scotiabank any time which translates into financial flexibility for shareholders. As part of this transaction the company can rely on a credit facility from Scotiabank of $2.25 billion, which may be utilized to cushion any refinancing risk of it's credit card portfolio. Overall with the Company’s diluted EPS, dividends paid per share and stock price that have risen over the past three years. And it's partnership with Scotiabank business pursuant to a strategic partnership agreement that includes a co-marketing arrangement. The Company’s Class A Non-Voting share price grew 22% over the prior year. The Company has a track record of increasing its annual dividend. Furthermore, In 2014 the company increased its annual dividend to $2.10 per share, and dividends paid per share represented 26.4 per cent of prior year normalized EPS. If they continue to invest into their strengths to meet their objectives they should continue to have a healthy total return of 10 per cent to 12 per cent including dividends for their shareholders over the next few years.
During 2014 there was an ethical dilemma that occurred at Canadian Tire. There was an employee named Samantha and she held the position of a Supervisor at Canadian Tire. Canadian Tire would give out Canadian Tire money to their clients depending on how much they have spent at the store and this was basically a marketing strategy for Canadian Tire whereby the clients could use the Canadian Tire money to purchase merchandise at the store. Samantha was in charge for restocking the Canadian Tire money at all times. Every time Samantha restocked the Canadian Tire money she would always withdraw few dollars out for herself and make adjustments on the paperwork and she would go to the Canadian Tire Gas station and purchase gas for herself. She went
They also built and operate the award-winning Joe Fresh site, as well as the Joe Fresh iPad and iPhone apps. Our latest launch, beauty Boutique.ca, provides a new way for Canadians to shop prestige beauty products from anywhere. And also it is convenient to have their groceries loaded for the customer without needing to step into the store but I’d encourage investors to try out the new Click & Collect system for themselves, as I believe it plays a gigantic role in the future success of the company’s adaptation efforts and is an early sign of how the company is likely to fare as it makes a deeper dive into tech. When preparing to fight off Amazon, there’s zero room for error. but the digital platform has a boat-load of bugs and broken pages, and the user experience, there is severely lacking in comparison to Amazon. There is a fear that Loblaw may quickly fall behind, given it’s being forced to play on Amazon’s turf when it comes to technological innovation and logistics. so Loblaw stands to be squeezed over the next few years more so if it’s unable to leverage technology in a more effective
“The Miles and Snow’s typology is based on the idea that managers seek to formulate strategies that will be congruent with the external environment” (64). There are four types of strategies that can be established under this typology that is, the prospector, the defender, the analyzer and the reactor. While prospector is innovative and risky, the defender is conservative and concerned with stability. I have mentioned above that HBC is now able to compete with premium brands retailer due to an acquisition of Saks Fifth Avenue, and yet they are not utilizing low-cost leadership as their main competitive strategy. Nonetheless, Daft and Armstrong showcases a perfect example of the defender positioning using HBC’s case. “HBC has carefully monitored its margins and spending, maintained its discount brand (Zellers) in order to successfully compete with Walmart, and survived as one of Canada’s only two national department store” (65). Then they further describe how HBC refurbish its brand, “HBC hired Bonnie Brooks in 2008 to revamp its brand”, “She dropped many underperforming product lines and brought in trendy product lines such as Coach and Top Shop” (65). This explanation also supports my
Target’s first foreign store investment was in Canada; American stores look to Canada as their first foreign investment because the differences between the two countries are relatively minor. Other stores that have expanded to Canada include Wal-Mart, and Sears, each of these companies proved to be prosperous in Canada. Canada is one of the wealthiest countries in the world and is dominated by the service industry, Wawa would have no trouble fitting into the culture Canada has and dominating the market as they do here, in the United States. After reading about Canada and Wawa, we have realized this move could only benefit Wawa and help their reputation and build their company.
Canadian Tires Supply Chain & Distribution teams guarantees their promise to their customers, to be their when they need them the most. For Canadian tire that means transporting excellent products from vendor to stores in the most effective and responsible way there is. Canadian Tire is always improving, they always tuning their capacity models, employing technology solutions, and building strong relationships with third party logistics and their product suppliers so they can do an excellent job at managing one of country’s deepest and most extensive supply chain network. They are always sharing long- term agreements with their partners. , They are always sharing forecast information and performing metrics so they can better
...han a mercantile operation. This is evident through the rise of competition in the market, which prompted HBC to change to a corporative framework to carry out its operations. Furthermore, decreasing demand and supply of fur was weakening HBC. Focusing on other goods, rather than fur indicated that the company was reforming from its mercantile philosophy and exploiting other markets through a corporative framework. Lastly, the mercantile management was another declining factor to HBC’s operations. Leaders like George Simpson advocated a corporate management style so that it does not contradict with current Canadian economic environment. On the whole, it was important for HBC to transition to a complex corporate framework in order to survive through the transition. This transition initially progressed Canada towards the confederation and made its own stand globally.
Canadian Tire’s positioning is adapting to the needs of customers and approaching new ideas. It’s also a very well know and establish organization in Canada.
A positive to expanding to Canada is that Canadian shoppers are similar to American shoppers, ideally making this a good target market for growth (Fiorletta, 2015). In an interview regarding expansion in Canada, CO-CEO Walter Rob said, “Our efforts in Canada are part of the effort to grow.” “We think the opportunity for fresh, healthy foods is larger now that it’s ever been”. “And we intend to grow as fast as we have ever grown — 40 new stores next year, 42-44 for the following year.” “That’s 10% square footage growth on top of 15 million square feet of retail we already have.” “People have said maybe we should stop our growth.” “I said, no, we are not going to do that because our strategy is working.” “There’s no reason to stop.” “There’s every reason to keep going.” (Vieira,
There were and are many opportunities for CarMax to continue to grow its business. According to the case, CarMax has been already planned for next few years; entering 50 to 100 smaller markets with a ‘next-generation store’
...wn and will most definitely begin to grow as a company and also a trademark of Canada.
Growing globally- Air Canada have the opportunity to grow globally by building their network with different countries and this relationship should be long lasting for more growth.
Fortunate for Walmart, the competition of another retailer was nothing for Walmart which had a Canadian presence for over twenty years prior to Target’s abrupt entry. Walmart continues to maintain a steady and moderate sales growth in
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
In addition, there is the country’s largest distribution center in Quebec. Halifax imports approximately 25 % of Canadian Tire’s shipment; on the other hand, Vancouver imports rest of them (Ouellette, 2010, p2).
The purpose of this presentation is to provide a comparative analysis of business activities of two well-known representatives of the US retail industry, Target and Walmart. My research is focused on a business strategy of these largest and most experienced American merchandising companies; particularly, on their activities in Canada. Based on the data collected from the various sources, I would like to detect, analyze, and demonstrate the obvious causes that have lead to a catastrophic failure of Target in its unsuccessful attempt to win a Canadian market.