Canadian Tire Corporation Stock

Canadian Tire Corporation, Limited, together with its subsidiaries, engages in the retail goods and services, financial services, and real estate operations in Canada.

Segments

The company operates through three segments: Retail, Financial Services, and CT REIT (CT Real Estate Investment Trust).

Retail segment

The Retail segment includes Canadian Tire, SportChek, Mark’s, PartSource, Petroleum, Helly Hansen and Party City businesses. It also includes the Consumer Brands division, which supports the retail banners in the development and acquisition of owned brands and products.

Canadian Tire Retail

Canadian Tire is a Canada's general merchandise retailer operates under the Canadian Tire name and trademark that provides Canadians with products for life in Canada across its Automotive, Living, Fixing, Playing, and Seasonal & Gardening divisions. It offers consumers with a wide range of products consisting of over 154,000 stock keeping units (SKUs) under 197 product categories. The majority of Canadian Tire stores also provide a variety of automotive services, including oil changes and tire installations to brake and engine repairs. Canadian Tire operates stores owned by CT Real Estate Investment Trust, owned by the company, and leased from third parties. It also offers online shopping through its website and mobile application with click-and-collect and deliver-to-home order fulfilment.

The Automotive division provides automotive products and services at Canadian Tire, including automotive maintenance products and accessories, parts, and tires, as well as automotive repair and roadside assistance. Canadian Tire stores house over 5,600 automotive service bays.

PartSource, an automotive parts chain stores in Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia. Its specialty stores, which provide access to over 400,000 automotive parts. PartSource stores also offer a broad selection of automotive parts and maintenance accessories to Canadian Tire stores and other retailers and commercial customers. It supplies auto parts to Canadian Tire stores and satellite locations in small to mid-sized markets through its PartSource Hub Stores to carry a broader assortment of products.

The Living division offers kitchen, home organization, decor and essentials, home electronics, pet, cleaning and consumable products.

The Fixing division provides products in the tools, hardware, paint, electrical, plumbing, home environment and smart home categories. Canadian Tire focuses on providing customers with the tools and products they need to repair and maintain their homes.

The Playing division provides outdoor recreation, exercise, footwear and apparel, hunting, fishing, camping, and sporting goods products.

Pro Hockey Life, a specialty retailer, which sells high-end hockey assortments. It operates through 16 Pro Hockey life stores located in Alberta, British Columbia, Manitoba, Nova Scotia and Ontario.

The Seasonal & Gardening division covers all the products customers need to tackle the Canadian seasons. Fall and winter categories include Christmas trees, lights and decor, Halloween décor and costumes, yard care and maintenance and snow removal equipment. Spring and summer categories include patio furniture, barbeques, pools, trampolines, outdoor power equipment and tools, live plants and gardening supplies. Canadian Tire also provides a wide range of products in the kid’s fun area, which includes categories, such as backyard amusement, pool fun, and toys and games.

Also managed within the Seasonal & Gardening division is Party City, a leading, one-stop shopping destination for party supplies with 65 Canadian retail stores in Alberta, British Columbia, New Brunswick, Newfoundland, Nova Scotia, Ontario, and Saskatchewan. Party City specializes in seasonal and micro seasonal celebrations, including New Year’s Eve, Easter, Halloween and Christmas. With the addition of Party City, Canadian Tire is a destination for celebrations in Canada. Select Party City products are available at Canadian Tire stores and on Canadian Tire’s website.

Petroleum

Petroleum is one of Canada’s largest independent retailers of gasoline with retail gas bars, many of which are located adjacent to Canadian Tire stores. Petroleum also operates gas bars and associated convenience stores located at ‘ONroute’ rest stops on major Ontario highways (Highway 401 and Highway 400). The gas bars are operated under the Canadian Tire and Gas+ names and trademarks by independent retailers pursuant to agreements governing the sale of petroleum products.

SportChek

SportChek operates a group of sporting goods and active wear retailers in Canada that offers a comprehensive assortment of national and owned brand products through a network of corporate-owned and franchised stores, and eCommerce websites. Owned brands carried at SportChek include Ripzone, Helly Hansen and Woods. Its primary retail banners are SportChek, Sports Experts, National Sports and Atmosphere, all of which provide online shopping through their websites and curbside and in-store pickup. Stores operated under the SportChek banners are primarily leased from third parties.

Corporate Store Operations – The corporate-owned retail stores operate under the SportChek, Atmosphere and National Sports banners.

SportChek is a leading national retailer offering a wide assortment of athletic, outdoor, leisure, and recreational footwear, apparel and accessories, along with sports equipment and wellness products. Its brand positioning, category breadth and in-store experience target customers of all ages looking to lead a healthy, active lifestyle.

Atmosphere is a specialty retailer offering high-end, outdoor technical gear, casual clothing, footwear and accessories, with both national and owned brand representation. Atmosphere stores in Quebec are franchised operations.

National Sports is an Ontario-based discount sporting goods retail chain focusing on footwear, sports equipment and apparel, with a strong position in the hockey, licensed apparel and team sports categories. As part of the company's Operational Efficiency program, in 2020, a decision was made to close all National Sports retail stores and its eCommerce channel to eliminate duplication across banners.

The corporate-owned retail banners offer the full assortment and extended aisle products through their eCommerce websites, which fulfill orders from distribution centres, retail stores and directly from vendors.

Franchise Operations – SportChek also operates a franchise division for a number of its retail banners, including Sports Experts, Atmosphere, Hockey Experts and Sports Rousseau/L’Entrepôt du Hockey.

Sports Experts is the largest sporting goods retailer in Quebec, offering a broad assortment of national and owned brand products, including equipment, apparel, footwear and accessories.

Atmosphere, which operates as a corporate-owned banner in other provinces, is a franchise operation in Quebec.

Hockey Experts specializes in hockey equipment, apparel and accessories. Sports Rousseau/L’Entrepôt du Hockey operates stores offering high-end hockey assortments exclusively in Quebec.

The franchise-operated stores offer a limited assortment of products through their eCommerce websites, which fulfill orders from distribution centres.

In addition to the franchise-operated stores, there are a number of third-party operated stores that have buying member status in SportChek’s franchise program with access to products for their businesses. These buying members typically undertake their own merchandising, purchasing, advertising, transportation and general administration.

Mark’s

Mark’s is one of Canada’s largest casual and industrial apparel and footwear retailers, known for offering quality and innovative products through owned and national brands. The store network consists primarily of corporate-owned stores with some franchised stores. Owned brands carried at Mark’s include Denver Hayes, Dakota, WindRiver and Helly Hansen. These brands are complemented by nationally recognized brands, such as Levi’s, Timberland, Carhartt, Silver, Columbia and Skechers. Mark’s operates under the banners ‘Mark’s’ and ‘L’Équipeur’ in Quebec; and offers online retailing through its websites. Online order fulfilment is offered through in-store pickup, deliver-to-home and curbside pickup. Mark’s uses its digital assets to create a personalized customer experience and specialized offers.

Mark’s Commercial – Mark’s also conducts a business-to-business operation under the name ‘Mark’s Commercial’, selling footwear, apparel and personal protective equipment to businesses with a focus on industrial employee needs.

Helly Hansen

Helly Hansen is a leading global brand with an international wholesale and retail business in outerwear, baselayer and workwear, based in Oslo, Norway. Helly Hansen products are sold in more than 40 countries, including in core markets, such as Norway, Sweden, Canada, the United Kingdom and the United States.

Helly Hansen is known for its professional grade gear and for being a leader in designing innovative and high-quality technical performance products developed for the harshest outdoor conditions. Within its core categories of sailing, skiing, mountain, urban, base-layer and workwear, Helly Hansen designs and delivers products used by professionals and outdoor enthusiasts around the world to help people stay and feel alive. Helly Hansen engages in developing and testing technologies with the input of professionals living and working in some of the world’s toughest environments. Many professionals rely on Helly Hansen’s products and innovative fabrics to keep them safe, protected and warm in some of the most challenging conditions.

Helly Hansen also owns the Musto brand, which is a leader in specialized technical apparel in the sailing, country, lifestyle and adventure categories.

Wholesale and Retail Operations – Helly Hansen sportswear and workwear products are sold across the world through a dedicated sales team and distributors. Helly Hansen’s wholesale channels consist of specialty sporting goods, workwear and department store retailers. In addition to its wholesale operations, Helly Hansen operates branded retail stores and outlets, mainly in Europe, with the primary purpose of promoting its brands in the support of its wholesale business. Helly Hansen also operates branded sportswear and workwear eCommerce sites in Canada, the United States and across Europe.

Owned Brands

The company develops and owns a strong stable of owned brands in Canada, which are primarily sold at Canadian Tire, SportChek and Mark’s. Some of the Company’s most recognized brands include Motomaster, Mastercraft, Maximum, Noma, Canvas, Paderno, Ripzone, Outbound, Woods, SherWood, Raleigh, Denver Hayes, Dakota, WindRiver, and Shambhala. The company continuously focuses on strengthening its owned-brand portfolio through internal product development, as well as selectively pursuing acquisitions to complement key categories. The company also owns Helly Hansen, a leading global brand with an international wholesale and retail business in outerwear, baselayer and workwear, based in Oslo, Norway.

Triangle Rewards

The company provides Triangle Rewards, a customer loyalty program, which is a platform for engaging with the company’s customers and providing them with a connected shopping experience.

The company’s customer loyalty program, Triangle Rewards, is a platform for engaging with the company’s customers and providing them with a connected shopping experience. Triangle Rewards offers an enhanced value proposition to members shopping across its retail banners, enabling them to collect and redeem electronic Canadian Tire Money across the company’s banners. As part of the Triangle Rewards program, CTB (Canadian Tire Bank) offers Triangle-branded credit cards, which allows cardholders to collect electronic Canadian Tire Money at an accelerated rate on all eligible purchases where Mastercards are accepted, for redemption across the company’s CTC retail banners. Triangle Rewards also selectively partners with Canadian retailers and brands (e.g. Husky Energy, Avis and Budget) to bring enhanced value and offers to Triangle Rewards members and Triangle-branded credit card holders, as applicable.

Retail Supply Chain and Distribution Network

The company’s supply chain uses a number of distribution channels, facilities and modes of transportation, including common carriers and railway transit, and is involved in most aspects of product replenishment and product information flow.

The company’s products are distributed to stores from its large network of distribution centres across Canada and selected products are distributed directly from suppliers.

The company also operates international distribution centres in Sumner and Washington servicing SportChek and Helly Hansen; and the Netherlands servicing Helly Hansen.

Financial Services segment

The Financial Services segment provides financial and other ancillary products and services, including Triangle-branded consumer credit cards, in-store financing, insurance and warranty products, and retail and broker deposits; payment processing services; and savings accounts and guaranteed investment certificates.

CT REIT segment

The CT REIT segment operates as an unincorporated closed-end real estate investment trust, which owns, develops and leases income-producing commercial properties located primarily in Canada. As of December 31, 2020, the company held a 69.2% effective interest in CT REIT.

As of December 31, 2020, CT REIT’s portfolio was consisted of 363 properties across Canada. The portfolio consisted of 357 retail properties, four industrial properties, one mixed-use commercial property and one development property. The retail properties, industrial properties and mixed-use commercial property contain approximately 28.7 million square feet of gross leasable area (GLA). The retail properties are made up of single tenant retail properties, multi-tenant properties anchored by a Canadian Tire store, and multi-tenant properties not anchored by a Canadian Tire store. The Canadian Tire stores owned by CT REIT range in size from 12,000 square feet of GLA to 198,000 square feet of GLA. The company is CT REIT’s most significant tenant with Canadian Tire stores, stores operated under the company’s other retail banners, the company’s head office and the company’s three industrial properties representing approximately 91.6% of CT REIT’s annualized base minimum rent and 92.2% of GLA.

History

Canadian Tire Corporation, Limited was founded in 1922. The company was incorporated under the laws of Ontario in 1927.