Canadian Tire

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Canadian Tire Corporation Limited
Canadian Tire
TypePublic
TSX: CTC (voting)
TSX: CTC.A (non-voting)
IndustryRetail
FoundedOctober 24, 1922; 98 years ago (1922-10-24)
FoundersAlfred J. Billes
J. William Billes
HeadquartersToronto, Ontario
Number of locations
1,686 locations: 503 Canadian Tire stores, 91 PartSource stores, 409 FGL Sports stores (various banners), 386 Mark's stores, and 297 gas stations.[1]: 26 [2]
Area served
Canada
Key people
Greg Hicks (President and CEO)[3]
ProductsAutomotive, sports, leisure and home products
RevenueIncrease $14.534 billion (2019)[4]
Increase $894.8 million (2019)[4]
Total assetsIncrease $19.518 billion (2019)[4]
Number of employees
58,000
SubsidiariesPartSource
FGL Sports
Canadian Tire Bank
Mark's
Canadian Tire Petroleum
Helly Hansen
Party City Canada
Websitecanadiantire.ca

Canadian Tire Corporation Limited is a Canadian retail company which operates in the automotive, hardware, sports, leisure and housewares sectors. Its Canadian operations include: Canadian Tire (including Canadian Tire Petroleum gas stations and financial services subsidiary Canadian Tire Bank), Mark's, FGL Sports (including Sport Chek and Sports Experts), PartSource, and the Canadian operations of Party City. Canadian Tire acquired the Norwegian clothing and textile company Helly Hansen from the Ontario Teachers' Pension Plan in 2018.

Canadian Tire is known for its Canadian Tire money, a loyalty program first introduced in 1958 using paper coupons that resemble banknotes. The company's head office is in Toronto, Ontario and it is listed on the Toronto Stock Exchange.

History[]

On September 15, 1922, John William Billes and Alfred Jackson Billes invested their combined savings of $1,800 in the Hamilton Tire and Garage Ltd. (established in 1909 as the Hamilton Garage and Rubber Company) in Toronto.[5] Hamilton Tire and Garage specialized in buying tires at a discount from manufacturers in the winter then reselling the tires during the busy summer season. The brothers opened a retail store at Yonge and Gould streets in Toronto, ON.[6]

A product focus on tires was emphasized in 1927 with incorporation of the name Canadian Tire Corporation Limited because, as A.J. Billes said, "...it sounded big".[7] During 1928, the first Canadian Tire catalogues were distributed, consisting of price lists along with road maps.

In 1934, the first official Associate Store was opened in Hamilton, Ontario by Walker Anderson on King Street.[8] In 1944, to fund its growth, Canadian Tire Corporation became a public company and sold 100,000 shares. By 1945 there were 110 Canadian Tire stores. In 1946 an employee stock purchasing plan was implemented to encourage employee loyalty while discouraging unionization.[7]

The first gas bar opened in 1958 at the corner of Yonge and Church streets in Toronto. Canadian Tire money that gave gas bar customers an in-store discount began in 1958. By June 1961, there were 31 locations. The small financial services company Midland Shoppers Credit Limited was purchased in 1968 and renamed Canadian Tire Acceptance, Limited.

A Canadian Tire store with a gas bar in Toronto, 1990

Canadian Tire entered the clothing market by acquiring Mark's Work Warehouse in 2001.[9]

In 2003, CTC established the Canadian Tire Bank, under Canada's Bank Act, from its then-named Canadian Tire Financial Services, Limited, subsidiary along with its Mastercard portfolio,[10] which was later renamed as Canadian Tire Services, Limited, effective January 1, 2015.[11][12] CTC sold 20% of its Canadian Tire Bank to Scotiabank in 2014.[13]

In April 2018, Triangle Rewards was launched as a replacement to the digital My Canadian Tire Money program and Options Mastercard.[14][15][16] Traditional paper Canadian Tire money continues to be offered at Canadian Tire for customers without a rewards card, though at a reduced rate.[17]

In May 2018, the company extended further into the clothing market by acquiring Helly Hansen.[18] As of August 2019, the company had 503 stores.[2] The current President and CEO is Greg Hicks.[19]

US expansion attempts[]

Canadian Tire tried twice to expand into the United States. In 1982, it purchased the Wichita Falls, Texas-based White Stores, Inc. automotive retail chain with 81 stores in Texas from its then owner Household Merchandising Inc., a subsidiary of Household Finance, for US$40.2 million.[20][21][22] In 1986, after losing nearly US$100 million they closed some stores and sold the remaining 40 stores, three warehouses and other White assets to Kansas City, Missouri-based Western Auto Supply[23]

The second time, during the early 1990s, Canadian Tire decided to try to open a specialized auto parts chain called Auto Source that tried to have more than 25,000 different parts on the shelf in each store, more than its competitors. The first Auto Source was opened in Indianapolis in 1991.[24] Unlike the previous attempt, the Auto Source concept was built from scratch.[25] During the next three years, Canadian Tire had opened two Auto Source stores each in Indianapolis, Cincinnati, Dayton, Columbus and Louisville for a total of ten stores before abruptly closing the money losing chain in 1995.[26][27][28] Some of the stores were sold to Pep Boys.[29]

Although the Auto Source lost nearly CA$60 million during its four years of existence, a scaled down version was used in Canada under the PartSource brand.

Brands[]

Mastercraft-branded Robertson screwdriver. Certain brands in Canada are branded exclusively for Canadian Tire.

Certain merchandise items are branded specifically for Canadian Tire. The most recognized of these are Mastercraft, which offers a wide range of tools, SuperCycle (bicycles), BluePlanet (eco-friendly household cleaners, CFL bulbs and other green items), Likewise (general household items such as lighting/electrical products and hardware) and Motomaster (tires, batteries and other automotive goods). NOMA, a company that exists in Canada as a trademark only, offering a wide range of items from Christmas lights to air purifiers. During the 1980s, Canadian Tire sold electronic items under the name Pulser (with Canadian Tire logo), such as radios, stereos, televisions, walkmans, cassette tapes, etc. It is unknown when the company began or went defunct.

On May 10, 2017 Canadian Tire announced it would be buying Padinox, the manufacturer of the Paderno brand of kitchen equipment.[30]

Operations[]

At the end of 2018, Canadian Tire employed 12,735 full-time and 17,951 part-time employee in the corporate structure.[31] These figures do not include temporary employees or employees working for Associate Stores, petroleum stores or franchise stores. There is an in-house Triangle Learning Academy, a pun on the CTC logo, for employee and Associate Store management training.

Financial services[]

Canadian Tire Bank (CTB) is the retail deposit-taking and credit card issuing arm of the company. Held indirectly under the Canadian Tire Services, Limited, holding company, Canadian Tire Bank (CTB), a bank under Canada's Bank Act since 2003. Prior to 2003, all financing occurred under the Canadian Tire Financial Services. In 2014, The Bank of Nova Scotia acquired a 20% economic and voting interest in Canadian Tire Bank, with an option to acquire up to an additional 30% of the company within 10 years (or require Canadian Tire buy back its existing 20% interest) at the then fair market value of business for $500 million CAD in cash.[32]

Ostensibly in tandem with Scotiabank's acquisition of a minority position in Canadian Tire Bank, Canadian Tire renamed its intermediary holding company Canadian Tire Financial Services Limited as Canadian Tire Services, Limited, effective January 1, 2015, dropping the moniker Canadian Tire Financial Services from use.[11][12] Additionally, in approximately 2018, Canadian Tire rebranded its credit card-issuing online banking website as Canadian Tire Bank, removing the last vestage of Canadian Tire Financial Services from active use.

Petroleum[]

A Canadian Tire Gas+ station at Richmond Hill, Ontario

Canadian Tire Petroleum (CTP), operating as Canadian Tire Gas+, is the division of Canadian Tire which operates gas stations and car washes.[2] CTP was founded in 1958 as a means of increasing customer traffic to Canadian Tire stores.[33] In Ontario, CTP also operates Pit Stop, which provides services like oil changes and rust checks. The Canadian Tire money loyalty program was originally launched through the gas bars as "Gas Bonus Coupons". CTP has opened 3 'Q' stop stores featuring a mini-grocery store as well as other items.[citation needed]

CTP also holds the concession to operate the 24-hour gas stations at ONroute service centres in Ontario along Highway 401 and parts of Highway 400.[34]

Retail[]

A Canadian Tire retail store in Richmond Hill, Ontario

Moody's observed the chain's unique position in Canadian retail as being "often both misunderstood and underestimated" and "completely foreign" in comparison to U.S. retail, citing its variety of products (ranging from auto parts, to sporting goods, to outdoors products, and grocery at some locations), and that "its proprietary 'currency,' Canadian Tire money, which is a by-product of its loyalty program, has been accepted across Canada by multiple retailers and could almost be described as a 'sub-fiat' currency."[35]

In 2009, the chain introduced a new store concept it dubbed the "Smart store"; they feature "boutiques" that prominently showcase products within the chain's core product categories. Popular product categories such as auto parts and home goods were moved towards the front of the store to improve their prominence, and some locations began to sell common groceries as a pilot project.[36] In June 2015, the chain opened its largest location to-date at South Edmonton Common, which features two floors, widened and expanded departments, various interactive experiences (including a driving simulator and virtual reality), as well as a rotating exhibit of Hockey Canada memorabilia.[37]

With the demise of Target's businesses in Canada in 2015, Canadian Tire took over the lease of 12 of the former Target store locations.[38]

In November 2000, Canadian Tire introduced an online retail operation. On January 1, 2009, citing consumer disinterest in online shopping in comparison to its physical stores, the Company discontinued online sales.[39]
On November 1, 2013, Canadian Tire returned to online shopping with delivery to stores.[40]

Automotive parts[]

In addition to the Canadian Tire stores' Parts department CTC owns PartSource, an automotive parts and accessories specialty chain which has 91 stores across Nova Scotia, Ontario, Manitoba, Saskatchewan, and Alberta. It serves commercial automotive installers and do-it-yourself mechanics. Before November 2013, some stores were owned and operated by franchisees; all currently belong to Canadian Tire.[41]

Clothing[]

A Canadian Tire with a Mark's integrated into the store

In 2001, Canadian Tire acquired Mark's Work Warehouse (now branded as Mark's), a retailer of business casual and work wear, for $116 million.[9] Along with standalone stores, some Canadian Tire locations feature integrated Mark's locations. However, some smaller Canadian Tire locations removed their Mark's department when remodelled into the "Smart store" format due to space constraints.[36]

In May 2018, the Ontario Teachers' Pension Plan sold the Norwegian sportswear retailer Helly Hansen to Canadian Tire for $985 million CAD.[18]

Sporting goods[]

In May 2011, Canadian Tire announced the purchase of Forzani Group, a Canadian sporting goods retailer that operates various brands, including SportChek, Atmosphere, Intersport, Hockey Experts, National Sports, Nevada Bob's Golf, S3, Sport Mart, Sports Experts, Tech Shop, Pro Hockey Life, and The Fitness Source.[42] In February 2021, Canadian Tire announced the closure of all National Sports stores, citing a focus on efficiencies and core assets.[43]

Party City[]

In October 2019 Canadian Tire closed its acquisition of Party City's Canadian business. As part of the deal, CTC signed a 10-year supply agreement with Party City's parent company Amscan.[44]

Marketing[]

Advertisements[]

Historically, Canadian Tire's Christmas ads featured Santa Claus and Ebenezer Scrooge arguing about whether Canadian Tire's selection or their sales prices are the reason to do Christmas shopping there involving the marketing slogan "Give like Santa, save like Scrooge". A stamp was issued by Canada Post commemorating Canadian Tire's 75th anniversary based on the Canadian Tire advertisement of a boy (Bike Story) receiving his first bicycle which was purchased by his father at a Canadian Tire retail store.

Starting in 2007, the company ran month-long advent calendar promotions which provided free CDs and discounts throughout the holiday season.

From 1997 to 2005, the company's ads featured the "Canadian Tire couple". The male role also known as the Canadian Tire guy was played by Canadian actor Ted Simonett, and Gloria Slade played the female role. They are usually showcasing a new product to one of their neighbours, who are in need of a certain tool. The 'Canadian Tire Couple' were featured on Royal Canadian Air Farce as one of their targets of the year, as "Canada's most annoying couple". They also made a feature guest appearance on Royal Canadian Air Farce as actors in a skit.

In early 2006, ads featuring the couple were phased out and replaced by a new campaign featuring overhead signs found in Canadian Tire's store aisles.

In 2013, Canadian Tire produced a commercial promoting its MasterCraft Eliminator Ultra car battery and its ability to function in extreme cold, which featured a stripped GMC Sierra pickup truck with its body re-created as an ice sculpture. The ad premiered during the 2014 NHL Winter Classic.[45][46]

In March 2015, Canadian Tire launched a new ongoing marketing campaign, "Tested for Life in Canada". The campaign, which includes television advertising and in-store labels, showcases products that have been vetted based on input by a consumer focus group recruited by the chain, as well as their reviews of the products. The program also collects feedback that is used to help improve products marketed by Canadian Tire.[47][48]

Sports sponsorships[]

A tunnel with Canadian Tire signage on the top of it at Canadian Tire Motorsport Park. The company is a motorsport park's name sponsor.

During the 1980s, the company sponsored a IndyCar racing team. Alfred J. Billes's son David Billes is a Canadian former Corvette racer before opening Performance Engineering Ltd. He was later Jacques Villeneuve (elder)'s car owner in CART IndyCar competition in the early 1980s, and entered two cars in the 1985 Indianapolis 500.[49] In 1985 Jacques Villeneuve Sr. won the race at Road America.

David Billes was inducted into the Canadian Motorsport Hall of Fame in 1994.[50]

# Season Date Sanction Track/Race No. Winning Driver Chassis Engine Tire Grid Laps Led
1 1985 August 4 CART Road America (R) 76 Canada Jacques Villeneuve (Sr.) March 85C Cosworth DFX V8 t Goodyear 4 14

See also[]

  • List of Canadian department stores
  • NASCAR Canadian Tire Series

References[]

  1. ^ "Management's Discussion and Analysis" (PDF). Canadian Tire. Retrieved February 8, 2017.
  2. ^ Jump up to: a b c "Number of stores operated by Canadian Tire Corporation in Canada in 2018, by brand". Retrieved August 16, 2019.
  3. ^ "Greg Hicks appointed CEO of Canadian Tire Corporation". March 12, 2020. Retrieved March 25, 2020.
  4. ^ Jump up to: a b c "Management's Discussion and Analysis: Selected Annual Consolidated Financial Trends 2019" (PDF). Canadian Tire Corporation. p. 4. Retrieved March 16, 2020.
  5. ^ "History". Canadian Tire. Archived from the original on March 12, 2017. Retrieved September 23, 2017.
  6. ^ McBride, Hugh (1997). Our Store 75 Years of Canadians and Canadian Tire. Toronto: Madison Press Books. p. 19. ISBN 1-895892-10-4.
  7. ^ Jump up to: a b "Canadian Tire". Retrieved August 16, 2019.
  8. ^ "The Hamilton Memory Project" (Press release). The Hamilton Spectator- Souvenir Edition. June 10, 2006. p. MP38.
  9. ^ Jump up to: a b "Canadian Tire buys Mark's Work Wearhouse for $116 million". CBC News. December 19, 2001. Retrieved June 26, 2011.
  10. ^ "About Us". ctfs.com. Retrieved August 18, 2019.
  11. ^ Jump up to: a b "2015 Annual Information Form from Canadian Tire Corporation, Limited" (PDF). Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. February 17, 2016. Retrieved August 24, 2019.
  12. ^ Jump up to: a b "2014 Annual Information Form from Canadian Tire Corporation, Limited" (PDF). Canadian Tire Corporation, Limited. Canadian Tire Corporation, Limited. February 26, 2015. Retrieved August 24, 2019.
  13. ^ "Scotiabank, Canadian Tire strike $500M financial services deal". CBC News. The Canadian Press. May 8, 2014. Retrieved October 13, 2015.
  14. ^ Shaw, Hollie (April 9, 2018). "Canadian Tire ups the stakes in its loyalty program, but do customers have loyalty fatigue?". Financial Post. Retrieved April 15, 2018.
  15. ^ "Canadian Tire expands loyalty program". The Canadian Press. April 9, 2018. Retrieved April 15, 2018 – via Cambridge Times.
  16. ^ "Canadian Tire Expands Its Triangle Rewards to Include Husky Locations". Franchising.com. October 3, 2018. Retrieved October 13, 2018.
  17. ^ Cazzin, Julie (April 9, 2018). "What Canadian Tire's loyalty changes mean to you". Maclean's. Retrieved April 15, 2018.
  18. ^ Jump up to: a b "Canadian Tire to buy sportswear brand Helly Hansen in $985-million deal". The Globe and Mail. The Canadian Press. May 10, 2018. Retrieved May 10, 2018.
  19. ^ "Our Leadership Team". Retrieved August 18, 2019.
  20. ^ "Household Finance To Sell Store Assets To Canadian Tire Unit". The Wall Street Journal. November 18, 1981. p. 40. Archived from the original on August 5, 2017. Canadian Tire Corp. said it agreed to acquire most merchandising assets of White Stores Inc., a Texas-based home and auto supplies concern.
  21. ^ "Canadian Tire Completes Purchase of Some Assets". The Wall Street Journal. February 25, 1982. p. 3. Archived from the original on August 5, 2017. Canadian Tire Corp. said it completed the previously announced purchase of most merchandising assets of White Stores Inc. of Wichita Falls, Texas, from Household Merchandising Inc. for $40.2 million (U.S.)
  22. ^ "Canadian Tire's mistaken leap into the U.S.". Venture. December 8, 1985. CBC.
  23. ^ "Canadian Tire sells U.S. subsidiary". United Press International. February 28, 1986.
  24. ^ "A new kind of auto store: Canadian retailer to open first U.S. locations here this summer. (Canadian Tire Corp. Ltd.'s US Division, Car Car USA Inc.)". Indianapolis Business Journal. April 15, 1991. Archived from the original on August 5, 2017. Retrieved August 5, 2017 – via HighBeam Research.
  25. ^ Bohman, Jim (January 12, 1992). "Customers Park in Or Out – Parts, Service in Supermart". Dayton Daily News. p. 1F.
  26. ^ McCarron, Kathy (January 9, 1995). "Canadian Tire Closes Auto Source". Tire Business.
  27. ^ Peale, Cliff (December 7, 1994). "Auto Source chain shuts down – 91 jobs are lost here at 2 stores". Cincinnati Post. p. 6D. Archived from the original on August 5, 2017.
  28. ^ Gebolys, Debbie (December 3, 1994). "Auto Source Stores Crash in Columbus, Other Cities". Columbus Dispatch. p. 01F. Archived from the original on August 5, 2017.
  29. ^ "Pep Boys To Acquire Three Auto Source Stores" (Press release). PR Newswire. March 5, 1995. Archived from the original on February 24, 2014 – via The Free Library.
  30. ^ LIMITED, CANADIAN TIRE CORPORATION. "Canadian Tire Acquiring Padinox, Owner of the Paderno Brand in Canada". www.newswire.ca.
  31. ^ "Canadian Tire Corporation 2018 Annual Information" (PDF). p. 19. Retrieved August 18, 2019.
  32. ^ "Canadian Tire Corporation and Scotiabank enter strategic business partnership that includes Scotiabank acquiring 20% of Canadian Tire's Financial Services Business". Canadian Tire Corporation, Limited. Retrieved August 25, 2019.
  33. ^ "Canadian Tire Petroleum Celebrates 45 Years". Convenience Store News. October 5, 2003.
  34. ^ "Fuel". ONroute. August 18, 2019. Archived from the original on September 5, 2016.
  35. ^ Babad, Michael (May 12, 2014). "Triple-eh: Moody's lauds Canadian Tire money as almost 'sub-fiat'". The Globe and Mail. Toronto. Retrieved May 12, 2014.
  36. ^ Jump up to: a b "Its superstores stalling, Canadian Tire gets 'smart'". The Globe and Mail. Retrieved November 14, 2018.
  37. ^ "Country's largest Canadian Tire opens in South Edmonton Common". Edmonton Journal. June 4, 2015. Retrieved November 14, 2018.
  38. ^ "Canadian Tire to acquire 12 former Target locations". CBC News. May 6, 2015.
  39. ^ "Canadian Tire to cease online sales". United Press International. January 20, 2009. Retrieved December 15, 2012.
  40. ^ Nguyen, Linda (November 7, 2013). "Canadian Tire makes move into e-commerce". Toronto Star. Retrieved April 3, 2014.
  41. ^ "Canadian Tire Corporation Annual Report 2013" (PDF). p. 25. Retrieved August 18, 2019. In addition, during 2013, Management converted all of its Partsource franchise locations to corporately operated stores.
  42. ^ "Canadian Tire to buy Forzani Group". CBC News. May 9, 2011.
  43. ^ "National Sports stores all closing despite parent-company Canadian Tire posting 'phenomenal' Q4 earnings". CTV News. February 18, 2021.
  44. ^ "Party City Completes Sale of Canadian Retail Business to Canadian Tire". October 1, 2019.
  45. ^ "Iceculture builds ice truck for Canadian Tire commercial". SouthWesternOntario.ca. December 27, 2013. Archived from the original on February 6, 2018. Retrieved November 14, 2018.
  46. ^ "Ice truck attempts Guinness record on highway 84". Exeter Lakeshore Times-Advance. December 30, 2013. Retrieved November 14, 2018.
  47. ^ "'Tested for life': Canadian Tire Corp taps customer testers for a hands-on marketing tool". Financial Post. March 10, 2015. Retrieved November 14, 2018.
  48. ^ "Canadian Tire program lets consumers do the talking". marketingmag.ca. Retrieved November 14, 2018.
  49. ^ "Two Indy entries a first for Canada". The Gazette. Montreal, PQ. May 21, 1985. p. D6. Retrieved April 23, 2013.
  50. ^ BILLES, DAVE. "Canadian Motorsport Hall of Fame". cmhf.ca.

External links[]

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