Canadian Tire: Cultural Phenomenon or Just Another Big Box Store?

Canadian Tire (TSX: CTC.TO), a specialty store selling not only hardware products, but home products, camping, sporting and other indoor and outdoor gear, opened its doors in 1922, meaning that it was in existence long before The Home Depot (though unlike The Home Depot, Canadian Tire isn’t usually considered a “big box,” probably because of its long history).  In addition to home and outdoor products, Canadian Tire also owns a network of gas stations as well as an apparel chain, called Mark’s Work Warehouse.  Recently, Canadian Tire announced that it was going to go into the grocery business, which, if successful, would change the entire concept of big box one-stop shopping.  However, many are sceptical of this because they think it is expanding beyond its niche, doing too many things at the same time and hence not focusing on what they’re best at.

Canadian Tire is known for its marketing and advertising.  When people make purchases in cash, they are given  ”Canadian Tire Money” – loyalty coupons which resemble “real” money – where customers can use in their next purchase of Canadian Tire. This cash coupon program was considered highly innovative when it was first introduced many years ago. To-date, it is still an effective tool in drawing in customers. Its advertising programs also manage to make a strong impression on the consumers. For example, around Christmas each year, its ads tend to focus on Scrooge and Santa, using the tag line “Spend like Santa, save like Scrooge.”

Because of its long history in Canada, Canadian Tire has long been identified with Canadian culture. Its general focus on outdoor gear fits like hand and glove the stereotypical Canadian’s love of camping and nature and certainly played a part in shaping Canadian heritage over the last 85 years.  For many Canadians, Canadian Tire is part of their everyday life.  Canadian Tire is like hockey.  In fact, many people bought their first skates at Canadian Tire.

On Tuesday, October 28, Canadian Tire opened at 49.50and closed at 48.00.  Its 52-week high was 101.50 and its low was 48.00

What do you think of Canadian Tire, in general?  What about their plan to sell groceries?  Can you imagine going to buy a hockey sticks….and milk?

DISCLAIMER: The purpose of this column is not to give financial advice or analysis, but to highlight how these companies affect our every day lives.