Canadian Tire eyes e-commerce as 'mammoth opportunity'

TORONTO -- The next acquisition for Canadian Tire Corp. will likely be in e-commerce, says the head of the national retailer.

See Full Article

"We set a path for ourselves to be a leader in e-commerce in Canada and that's where we're heading," president and CEO Michael Medline told analysts during a call Thursday following the company's latest quarterly results.

E-commerce is a "mammoth opportunity" for the general merchandiser to establish a firm footing in the new, emerging digital world, Medline said.

"We're doing a great job in our Old World assets, which are going to be a huge part of our business for the foreseeable future," he said. "We're now going to transform ourselves and dominate in e-commerce."

The Toronto-based company (TSX:CTC) said growing its digital business will help shield it in the future from some of the uncontrollable negative factors that can impact its business, such as a weakened economy, declining oil and currency prices and this year's unseasonably warm winter.

Canadian Tire said about a quarter of its sales in the fourth quarter were related to winter gear such as long johns and snowboards, with its clothing chain Mark's having the most seasonal exposure.

Still, it said it overcame these factors, including lower prices for the gasoline it sells, to grow its profit for the period ended Jan. 2.

Canadian Tire reported net income of $241.5 million or $3.01 per share for the fourth quarter. That was up about 17 per cent from $206.6 million or $2.44 per share a year earlier, when several expenses were higher.

Its retail revenue fell 7.5 per cent to $3.38 billion from $3.65 billion, but that was partly due to one less week of selling in the latest quarter and also because of warm weather, the downturn in the Alberta economy and lower gasoline prices.

Excluding petroleum sales, Canadian Tire's overall revenue was $3 billion -- down 5.8 per cent from a year earlier.

Same-store sales -- those open for at least a year -- declined 5.2 per cent at Mark's when compared to the same quarter a year ago, while at FGL Sports they went down 0.4 per cent. Sport Chek saw a 1.6 per cent increase in same-store sales and Canadian Tire recorded a 2.0 per cent rise in same-store sales.

although up 1.6 per cent at the Sport Chek stores. Canadian Tire same-store sales were up 2.0 per cent from the year-earlier quarter.

For the full year ended Jan. 2, 2016, the company had $735.9 million of net income, up from $639.3 million in fiscal 2015. Revenue was $12.3 billion, down from $12.5 billion.



Advertisements

Latest Economic News

  • New York fines BNP Paribas $350 million in trading scheme

    Economic CTV News
    New York state regulators have fined French bank BNP Paribas $350 million, alleging bank employees for years manipulated global currency markets to benefit themselves at the expense of their customers. The New York Department of Financial Services said Wednesday that from 2007 to 2013 at least a dozen BNP Paribas traders manipulated the foreign exchange market, using chat rooms and fake trades in currencies including the South African rand, Hungarian forint and Turkish lira. Source
  • Bombardier and U.S. aerospace supplier Triumph settle legal dispute

    Economic CTV News
    MONTREAL -- Bombardier and Triumph have reached a settlement about five months after the U.S. aerospace supplier filed a $455-million lawsuit against the Quebec-based aircraft manufacturer. Details of the settlement announced Wednesday were not disclosed. Source
  • New TD call centre will create 575 jobs in Moncton, N.B., province says

    Economic CTV News
    MONCTON, N.B. -- TD has announced plans for a new call centre in Moncton, N.B., that the provincial government says will create up to 575 full-time jobs. The Toronto-based bank will receive up to $9 million in financial assistance from the government, which says the call centre will add $109-million to the province's GDP over six years. Source
  • Graco recalls My Ride 65 car seats in Canada for restraint defect

    Economic CBC News
    Graco's Canadian division is recalling 1,393 car seats with defective harness restraints. The recall affects certain "My Ride 65" model car seats manufactured between May 14, 2014 and July 30, 2014, according to a safety advisory from Graco. Source
  • OPEC nearing deal to extend oil output cut to March 2018

    Economic CBC News
    OPEC and non-member oil producers moved closer on Wednesday to clinching a deal on extending output cuts by nine months to clear a global stocks overhang and prop up the price of crude. The Organization of the Petroleum Exporting Countries meets in Vienna on Thursday to consider whether to prolong the accord reached in December in which OPEC and 11 non-members agreed to cut oil output by about 1.8 million barrels per day in the first half of 2017. Source
  • Moody's cuts China credit rating over rising debt

    Economic CBC News
    The Moody's ratings agency on Wednesday cut China's credit rating due to surging debt, prompting a protest by Beijing and highlighting challenges faced by communist leaders as they overhaul a slowing economy. The downgrade adds to warnings about China's reliance on credit to propel growth after the 2008 global crisis. Source
  • 'The Bank of Canada is not spooked' : Why the central bank is holding rates steady

    Economic CBC News
    The Bank of Canada kept its benchmark interest rate steady on Wednesday, but signalled that could change once the weak U.S. economy starts to rebound as expected through the latter part of the year. Canada's central bank kept its target for the overnight rate steady at 0.5 per cent on Wednesday, the same level it's been at since the middle of 2015, because the economy isn't showing any signs of needing any more or any less stimulus. Source
  • Ottawa offers $950 million for 'superclusters' to create jobs

    Economic CBC News
    The federal government is spending $950 million to fund an "Innovation Superclusters Initiative" that it says will "create more middle-class jobs and more opportunities for Canadian businesses to grow into globally successful brands." Minister of innovation, science and economic development Navdeep Bains made the announcement at the offices of BlackBerry QNX in Kanata, Ont. Source
  • 'Do you want to get thrown off?': Airlines can prohibit passengers from shooting video

    Economic CTV News
    DALLAS -- Without the shocking video, it's unlikely that the world would have learned or cared about the violent manhandling of a 69-year-old man on a plane last month. The outrage on social media, the mea culpa by an airline CEO, the promise to treat customers better -- none of it would have happened. Source
  • OPEC likely to extend output cuts, but price relief elusive

    Economic CTV News
    VIENNA -- OPEC oil ministers meeting this week appear damned if they don't extend production cuts -- and only slightly less damned if they do. Ministers of the 13-nation cartel will likely decide to prolong them in an effort to support prices, when they meet Thursday. Source