Canadian Tire Corporation, Limited
TSX-CTC.A
Company Overview
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates in three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, tires as well as automotive repair and roadside assistance; kitchen, home organization, decor and essentials, home electronics, pet, and cleaning and consumable products; tools, hardware, paint, electrical, plumbing, home environment, and smart home products; and outdoor recreation, exercise, footwear and apparel, hunting, fishing, camping, and sporting goods. It also retails Christmas trees, lights and decor, Halloween décor and costumes, yard care and maintenance, and snow removal equipment; patio furniture, barbeques, pools, trampolines, outdoor power equipment and tools, plants and gardening supplies; backyard amusement, pool fun, and toys and games; gasoline; sporting goods and active wear; casual and industrial apparel and footwear; and outerwear, base-layer, and workwear. This segment offers its products under the Canadian Tire, Canadian Tire Gas, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of 368 properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, a mixed-use commercial property, and development properties. The Financial Services segment provides financial and other ancillary products and services, including consumer credit cards, in-store financing, insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.
Name
Canadian Tire Corporation, Limited
CEO
Gregory Huber Hicks
Website
corp.canadiantire.ca
Sector
Broadline Retail
Year Founded
1922
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Bulls Say
The firm should benefit as more international retailers leave the country amid poor growth prospects.
Canadian Tire’s namesake banner is well received across Canada, and its loyalty membership should drive recurring foot traffic to its stores.
The retailer can leverage its vast physical footprint to reduce its fulfillment costs related to home delivery, as its stores serve as microfulfillment centers.
Bears Say
A lackluster Canadian economy is likely to weigh on the firm’s long-term growth outlook.
E-commerce penetration, while still small in Canada, is likely to increase over time, putting Canadian Tire into more direct competition with wide-moat Amazon.
The financial services segment exposes Canadian Tire to credit cycles that could pose unwanted risk in the event of economic turmoil.