Canadian Tire Corporation SWOT and PESTLE Analysis

Strength

1. Robust customer engagement through the Triangle Rewards Program: Canadian Corporation has been able to attain sustainable cross-banner customer engagement with the help of its Triangle Rewards Program. This program has immensely helped the company with relevant retail strategies, product assortments, marketing programs. Moreover, the Triangle Rewards program in combination with data and analytics allows the company to pass on the right information to the right customer, at the right time, in the right channel. The performance results can be noticed from the statement of the CEO and President of the company, Stephen Wetmore who attributed the exceptionally good performance, in terms of better and personalized customer engagement of the customer with the company, both on offline and online platforms and topline growth, of the fourth quarter for the fiscal year of 2019 to this Triangle Rewards Program. According to him, this program played an important role in getting the company to the e-commerce mainstream.

2. Leveraging digital capabilities in all aspects of CTC’s business: Canadian Tire Corporation has underpinned enhanced digital capabilities in the form of Triangle Rewards Loyalty Program, eCommerce to all the business aspects of the company. The digital properties owned by CTC include its websites and mobile applications, as well as in-store sales tablets. The company leverages these properties to deliver to its customers an omni-channel, personalized retail experience. Furthermore, the company’s digital capabilities with the aid of retail banners act as drivers of enhanced customer engagement by providing an advanced combination of digital and in-store experience as well as post-sale activities. Alongside, CTC is also maintaining its focus on e-commerce activities and making significant progress in leveraging the analytical capabilities, thereby, improving on its merchandising and supply chain functions. Recently, the Company released “Customer Engagement Through Digital” video, showing CTC’s progress in customer engagement and retention and acquisition.

3. Strengthening of product and brand portfolio by rights acquisitions: Since inception, the Canadian Tire Corporation has been involved in aggressive diversifications to widen its product and brand portfolio. In line with this, the company made serious business developments and acquisitions last year, denoting strong progress towards becoming the top retail brand in Canada. For example, in October 2019, the company acquired Party City and added its 65 Canadian retail stores spread across seven provinces to its portfolio and thereby, making CTC a destination for celebrations in Canada. The quest of expanding the portfolio further went on with the Canadian rights acquisition to the Raleigh, Diamondback, Redline and IZIP bicycle brands, the Muskol mosquito repellent brand as well as the US and Europe rights for Mastercrafts and Woods respectively. The CT REIT completed 17 acquisitions, four developments, two re-developments, 16 intensifications and one disposition contributing a total expense of $167 million in 2019.

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Weakness

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Opportunity

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Threats

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Political

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Economic

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Social

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Technological

1. Introduction of smart technology to key performance and safety apparel and footwear: All the advanced technology like IoT, AI and Big Data have motivated industries across sectors to adopt digital solutions for imparting better customer experiences. Myant Inc is a Toronto-based company involved in the world's first Textile Computing platform creation. The platform focuses on ambiently connecting humans to their atmosphere through textile-based solutions. In 2019, Canadian Tire Corporation entered into a partnership with Myant Inc and added wearable computing and smart textiles to CTC's retail portfolio, namely Helly Hansen, Woods and Dakota. These safer, comfortable and healthier, proprietary fiber-based innovations use Myant’s platform to bring an integration of biometric sensors, heat generation technology and electroluminescence. The resulting connection with smart devices will provide all the health information, starting from heart rate to blood oxygen levels, and also take significant leaps towards the development of next-gen Connected Health, Connected Worker and Connected Home applications.

2. Enhancing customer experience through leveraging e-commerce digital solutions: Upon the advent of Industry 4.0 with which digitization trends tag along, all the companies are transforming themselves digitally and shifting towards operating in the online platforms or omni-channels. Proceeding along the similar lines, Canadian Tire Corporation has also began tinkling with the newer trends of e-commerce, involving digital solutions. The principal motive is to provide the customers a digitally enhanced experience on their journey of online shopping. The proof of this transition is quite clear from the new, automated, 16-foot Self-Serve Pick-Up Towers at five locations across Canada in Vancouver, Calgary, Saskatoon and Toronto, introduced by the company, and thereby, making CTC the very first Canadian retailer to do so. Moreover, the company also introduced automated check-in terminals and fleet of self-serve lockers.

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Legal

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Environmental

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