Canadian Tire Corporation

    Canadian Tire Corporation SWOT & PESTLE

    • Report

    • ID: 532198
    • 17 Pages
    • March 2024
    • Region: North America
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    About Canadian Tire Corporation

    Canadian Tire Corporation, Limited is a Canadian retail company which sells a wide range of automotive, hardware, sports, leisure and home products. It is headquartered in Toronto, Canada and was founded in 15 September 1992 by Alfred J. Billes and J. William Billes. It is one of Canada’s most admired and trusted companies with world-class owned brands and exciting market-leading merchandising strategies. It is continually innovating with purpose to serve Canadian customers from coast-to-coast. The Company’s 1,700 retail locations, financial services and exemplary e-commerce capabilities help keep its customers on the move and on top of every season. Canadian Tire released an advertising campaign that focuses on the importance of national support behind Canadian athletes. It was selected as one of the Greater Toronto’s Top Employers (2020) and Canada’s Top Employers for Young People (2020).

Canadian Tire Corporation’s mission statement reads, “We exist to serve and enrich the lives of our customers, our team and our shareholders.” Its vision statement reads, “To be a growing, innovative eco-system of businesses achieving incredible results.” Canadian Tire Corp’s USP or unique selling proposition lies in being a leading brand in the lifestyle and retail sector, having a sustainable competitive advantage that stems from its trusted brand, different assortment, modern store network and global sourcing capabilities. Its tagline is “Bring it On”.

    Business Sector

    Retail

    Operating Geography

    Canada, North America, Global

    Revenue

    USD 14,534.4 million – FY ending 31st December 2024 (y-o-y increase of 3.4%)
    USD 14,058.7 million – FY ending 31st December 2023

    SWOT

    SWOT Matrix for Canadian Tire Corp

    Strength

    Weakness
    2. Serving a wide portfolio of products and services in the retail, finance and real estate sector
    3. Symbiotic relationship between CT and Associate dealers
    4. Strongest market share in Central and Eastern Canada, and other provinces
    5. Robust customer engagement through the Triangle Rewards Program
    6. Leveraging digital capabilities in all aspects of CTC’s business
    7. Strengthening of product and brand portfolio by rights acquisitions
    1. Softer housing demands and rising credit delinquencies
    2. Website issues during high demand during Covid-19 may impact customer experience

    Opportunity

    Threat
    1. Acquisition of Party City’s Canadian business
    2. Delivering better customer experience through process digitalization
    3. Hosting electric vehicle fast charging stations
    4. Focus on private labels to improve margins
    1. Risk exposure due to dependency on third- party suppliers outside North America
    2. Increasing competition in in-store and online retail segment
    3. Weaker CAD may impact imports costs, affecting margins

    Detailed SWOT Analysis of Canadian Tire Corp

    The detailed SWOT analysis for Canadian Tire Corporation is presented below:

    Strength

    1. Serving a wide portfolio of products and services in the retail, finance and real estate sector: Considering the life span of 95 years that Canadian Tire Corporation has been in business, the company boasts of a well expanded products and services’ portfolio. It operates in three reportable segments, the Retail segment, the Financial Services segment and the CT REIT segment. The first one, retail segment recently saw the acquisition of Party City in fiscal 2019. It consists of a wide range of products and services whose retail banners are supported by the consumers brand division and also other companies like SportChek, Sports Experts, National Sports, Pro Hockey Life, Atmosphere, Mark’s, PartSource, Gas+, Helly Hansen and Party City. The Financial Services segment is involved in the payment processing services as well as other financial and ancillary offerings, namely credit cards, in-store financing, insurance products, and retail and broker deposits. Last but not the least, the CT REIT segment is involved in the Canadian real estate, owning, developing and leasing stand-alone and geographically diversified properties.

    2. Symbiotic relationship between CT and Associate dealers: The large number of stores, i.e., 504 stores as well as the 5,620 automotive service bays that Canadian Tire owns, are operated by independent Associate Dealers. Each one of the associate dealers holds the responsibility for his own stores’ expenses and operates on his store fixtures, equipment and inventory. Most of the Canadian store premises are CTC-owned or leased, and the rest are licensed to the dealers. The symbiotic relationship between the Canadian Tire and the dealers is subjected to the governance of a contract according to which all the dealers have to operate and manage the CTC retail store businesses with maximum efficiency and capacity, under the latter’s name. The expiration date of the standard contracts generally lies on December 31, 2024. The policies, standards and plans prescribed by CTC, like offering merchandise to consumers at prices below that of the Canadian Tire, have to be followed by the dealers, in return for a number of functions like category business management, marketing and distribution of products being offered by the CTC.

    Weakness

    This section is available only in the 'Complete Report' on purchase.

    Opportunity

    This section is available only in the 'Complete Report' on purchase.

    Threat

    This section is available only in the 'Complete Report' on purchase.

    PESTLE

    PESTLE Matrix for Canadian Tire Corp

    Political

    Economic
    1. Impact on business due to US-China trade war
    2. Currency fluctuations affecting the sourcing from external third-party suppliers
    3. Low oil prices to dent Canadian economic growth and consumer spending

    Social

    Technological
    1. Switching of customers from offline to e- commerce mode
    2. Trend of driving electric and hybrid vehicles
    2. Introduction of smart technology to key performance and safety apparel and footwear
    3. Installation of fast-charging networks for electric vehicles
    4. Enhancing customer experience through leveraging e-commerce digital solutions

    Legal

    ENVIRONMENTAL
    1. Petroleum segment exposed to numerous federal and provincial regulations
    1. Moving towards zero-carbon emission future by adoption of electric vehicles
    2. Efficient product chemical management

    Detailed PESTLE Analysis of Canadian Tire Corp

    The detailed PESTLE analysis for Canadian Tire Corporation is presented below:

    POLITICAL

    1. Impact on business due to US-China trade war: The China–United States trade war is an ongoing political conflict between China and the United States. The dispute has seen the US and China impose tariffs on hundreds of billions of dollars-worth of one another's goods. Donald Trump has accused China of unfair trading practices and intellectual property theft. Whereas, China nurses the perception that America is trying to curb its rise as a global economic power. The trade war is having rippling effects globally and Canadian stock prices have been crashing down sharply on Bay Street Friday morning. In mid-May, 2019, the benchmark S&P/TSX Composite Index was down 156.70 points, or 0.96%, at 16,165.05 with The Capped Consumer Discretionary Index down 1.87%. Most Canadian stocks like Dollarama Inc. (DOL.TO), Canadian Tire Corporation (CTC.A.TO) and Canada Goose Holdings (GOOS.TO) dropped 2 to 2.5%.

    ECONOMIC

    This section is available only in the 'Complete Report' on purchase.

    SOCIAL

    This section is available only in the 'Complete Report' on purchase.

    TECHNOLOGICAL

    This section is available only in the 'Complete Report' on purchase.

    LEGAL

    This section is available only in the 'Complete Report' on purchase.

    ENVIRONMENTAL

    1. Moving towards zero-carbon emission future by adoption of electric vehicles: Canadian Tire has automotive as its heritage business. According to the claim of Andrew Davies, Senior Vice President, Automotive, Canadian Tire Retail, “With our premium real estate assets, we are able to provide convenient locations across the nation to service the growing number of EV vehicles in Canada,” Canadian government is also keen about increasing the fleet of zero emission vehicles and providing clean environment to its residents. Planning a strategy for such a positive change, CTC announced to establish fast charging stations for EVs in its 90 retail stores by the end of 2020. A total of 240 fast chargers and 55 Level 2 chargers will be installed at Canadian Tire locations. They have collaborated with FLO, Electrify Canada, Natural Resources Canada (NRCan), and Tesla to achieve this target.

    More Info

    Major Competitors

    • Walmart
    • Costco
    • Home Depot
    • Cabela’s
    • Lowe's
    • Campbell's
    • Canada Post
    • Trackwerks
    • RONA,
    • Central Home Improvement Wrhs
    • Do-Gree Fashions
    • Maurice

    Major Brands

    • Canadian Tire Retail
    • PartSource
    • Gas+
    • FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere),
    • Mark's
    • CT REIT
    • Canadian Tire Financial Services

    Table of Contents

    • Company Overview
      • 1.1 About the Company
      • 1.2 Business Sector
      • 1.3 Operating Geography
      • 1.4 Revenue
    • SWOT Analysis
      • 2.1 SWOT Table/ SWOT Matrix
      • 2.2 SWOT Overview
      • 2.3 Detailed SWOT Analysis
      • 2.4 Strength, Weakness, Opportunity and Threat
    • PESTLE Analysis
      • 3.1 PESTLE Table/ PESTLE Matrix
      • 3.2 PESTLE Overview
      • 3.3 Detailed PESTLE Analysis
      • 3.4 Political, Economic, Social, Technological, Legal and Environmental
    • Appendix
      • 4.1 Major Competitors
      • 4.2 Business Sectors / Diversification
      • 4.3 References used to prepare this reports
    • Conclusion
      • 5.1 Closing thoughts
      • 5.2 Methodology used to prepare this report
      • 5.3 Copyrights and Disclaimer

      References and Copyright

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