Canadian Tire Industry Analysis

Canadian Tire Industry Analysis

Canadian Tire industry analysis provides a description of Canadian Tire Corporation (CTC) with regards to its subsidiaries and how they operate towards achieving the set objectives. The phrase, ’Canadian Tire industry’ in this case is used to refer to the Canadian Tire Corporation, which is a banner of several companies dealing in various products and services. Contrary to what most people think, Canadian Tire deals in more than just tires. Founded in 1922, it is one of the oldest and most sought after retailers in Canada, for everyday goods and services.

Overview of Canadian Tire Industry Analysis

In order to effectively analyze Canadian Tire industry, it is important to first give a general view of the banner, distinguishing the various segments of the business. The following are some of the key elements to be covered in Canadian Tire industry analysis;

Canadian Tire is an industry made up of several companies, including Canadian Tire Retail, Gas+, Canadian Tire Financial services, Partsource, Mark’s and FGL. The corporation employs about 68,000 people, working in the more than 1,700 retail and gasoline branches it runs across Canada.

Retail Segments of Canadian Tire industry

The primary retail businesses of Canadian Tire include automotive, home and sports and leisure products and services.

  • Automotive

The PartSource subsidiary of CTC deals in a wide range of parts for do-it-yourself and professional automobile solutions. Canadian Tire Petroleum subsidiary operates more than 300 gas bar stores, the highest number of stores run by an independent gasoline retailer in Canada. The petroleum segment comprises 295 convenience stores, 89 propane stations and 82 car washes. The petroleum stores are located adjacent to tire stores to emphasize on the core business of the banner. Apart from auto parts, the company also has servicing stores.

  • Home

Canadian Tire offers a wide selection of home products and appliances for cleaning, cooking, décor among others. Besides, its stores also stock various tools for home maintenance.

  • Apparel

Though Mark’s retail segment, the company also offers a collection of casual and official apparel, including men and women’s footwear. Mark’s has over 348 corporate and 37 franchise stores from where shoppers can obtain clothing, footwear and accessories.

  • Sports and Leisure

FGL Sports is the leading retail outlet for sports products in Canada, with 421 stores across the country.

  • Financial Services

Canadian Tire also consists of a financial services section, made up of CTB, CTFS. These subsidiaries offers services ranging from financial management, personal loans, lines of credits, retail credit card portfolios among others. Canadian Tire also has its own branded Mastercard and customers can also make get high saving deposit accounts under the trademark.

  • REIT Segment

Under the trademark, Canadian Tire, the company introduced an IPO in 2013. This segment has a diverse portfolio of properties, consisting about 258 properties in every province in Canada. The properties span across an estimated area of 19.0 million square feet of leasable land. The main goal of this segment is to acquire, develop and lease income-generating commercial properties.

Business Operations

Although most of the retail and financial services offered by Canadian Tire are concentrated in Canada, the industry also has offices in foreign nations. For instance, its offices in the Pacific Rim handles product sourcing, logistics and management of vendors. Apart from visiting the local stores, customers can also order for products online. The company uses its own and third party logistic services to make deliveries.

In order to ensure effective running of its subsidiaries, the corporation provides merchandise to dealers across its stores, markets the products and manages the supply chain. The corporation signs contracts with dealers, who are then regulated by the policies of Canadian Tire Corporation. In doing business, the company emphasizes on innovation, customer care and sustainability.

Canadian Tire Industry Analysis: Sales and Earnings Performance

Considering the wide range of retail businesses operated under the banner, Canadian Tire, the industry’s performance has been above the cut. The retail businesses highlighted in the Canadian Tire industry analysis above reflect a company with massive revenue base. In the third quarter of 2015, the corporation recorded consolidated sales and earnings performance. The revenues rose 1.9% to 3,126.8 while the net income attributable to shareholders grew by 15.9% to settle at 199.7. Owing to these elements of growth, the corporation has announced a 9.5% hike in the annual dividend.

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