With the opening of a new automotive parts specialty test-store and a $1-billion investment in its auto service bays, Canadian Tire is aggressively making moves to expand its automotive business – by luring in those very car mechanics who long considered the automotive aftermarket giant a thorn in their sides.

‘This enables us to fill in certain markets,’ says Wayne Sales, senior vice-president of marketing for Canadian Tire.

The company, whose auto shops are often blamed by mechanics for the demise of the street-corner garage, is taking a two-tiered approach to attract those same independents into choosing Canadian Tire for their own business needs.

PartSource, a specialty store that will sell parts and lend repair tools, is being tested in Guelph, Ont. right now, says Sales, and there are plans to open more test centres in the coming months.

The company expects the stores to attract professional automotive installers and heavy-duty car buffs interested in doing their own repairs.

As well, the company says it has started expanding its 4,400 automotive bays.

The auto service departments, which traditionally sold only Canadian Tire brand parts, will now sell national brands and also lend certain tools to customers.

Canadian Tire is also testing a Parts Advantage Card at several stores, which will offer discounts to bulk buyers, according to Sales.

‘We think it’s prudent to test all strategies,’ says Sales, adding that the company could not yet predict which strategy will be implemented nation-wide. For now, advertising will include on-bus ads and inserts in local newspapers, he says.

Advertising will be handled in-house.

If these initiatives are successful, the company is expected to take the gas out of automotive parts distributors like United Auto Parts (uap) of Montreal. uap is one of the largest parts distributors in Canada with 700 stores and 13 distribution centres, along with 4,000 associates operating under a uap banner.

‘Competition is good,’ says Michel Gagnon, uap’s director of marketing, adding that the company will continue to do what it’s always done – offer parts and tools at a fair price.

uap’s advertising, which concentrates on brand awareness, is handled by Mediabec of Montreal.

The timing is right for Canadian Tire to make the effort to woo independent mechanic shops.

There is talk that u.s. auto parts chains, such as AutoZone of Memphis, are eyeing the Canadian market so Canadian Tire may very well want to establish a foothold before they do.

Also, Canadian Tire has been weathering heavy competition in the repair market, and there is room for improvement.

According to 1994 figures from the Automotive Industries Association of Canada, vehicle owners were more likely to turn to dealerships, service stations, independent repair shops and specialty shops over their local Canadian Tire for mechanic repairs.

And although Canadian Tire’s share of the do-it-yourself segment in 1994 was almost half of the entire market (at 45%), the retailer had showed a decline from previous years, while auto parts stores and service stations had both grown from previous years to control about one-quarter of the market combined.