Canadian Tire unveils multi-billion omnichannel investment plan

The retailer plans to spend big on loyalty, owned brands and new retail experiences over the next four years.
CanadianTire

Canadian Tire Corporation has announced a new strategic growth plan that includes investing billions of dollars into its omnichannel operations over the next four years.

Announced at the company’s investor day on Thursday, the company expects the plan to deliver an annual average consolidated comparable sales growth of more than 4% (excluding gas), ROI of over 15% and doubled its diluted EPS compared to 2019.

The biggest line item in the plan is approximately $2.2 billion to be invested into Canadian Tire’s omnichannel customer experience. That includes expanding the Triangle Rewards loyalty program – including the rollout of a new “Triangle Select” paid premium tier – and strengthening its data-led personalized marketing capabilities.

That omnichannel investment also includes $1.2 billion earmarked for “improving the connection of digital and physical channels and driving an enhanced customer experience.” This includes rolling out the “Concept Connect” to 225 stores, as well as introduce the new “Remarkable Retial” concept to footprints of over 100,000 sq. ft. The new large format concept is slated to open in Ottawa and Welland, Ontario this year, with Calgary following in 2025.

Canadian Tire also plans to expand CT Bank’s product offerings to include extending its existing Buy Now Pay Later product and more investment in things like curbside pickup options, electronic shelf labels and improvements to the mobile app.

Another major investment in the strategy is $2 billion pegged for growing Canadian Tire’s owned and exclusive brands. Already representing $5.7 billion in retail sales annually, the company plans to launch over 12,000 new owned brand products by 2025 and increase household penetration to 43% from the current 38%.

That also includes continuing to grow its Helly Hansen brand in Canada and internationally, as well as building partner brands like Levi’s, Petco and Reebok.

Canadian Tire also plans to invest roughly $675 million to strengthen supply chain fulfillment infrastructure and automation and $500 million to modernize its IT infrastructure.

“We are making strategic investments that will create better customer experiences, deeper customer connections and drive long-term growth and value for our shareholders,” said Greg Hicks, president and CEO of Canadian Tire Corporation. “Through our strategy, we will continue to evolve from a collection of banners, brands and channels into one integrated company – one in which all our assets render each other more valuable to create a truly differentiated customer experience.”