Giant in Canada

With sales of Can $ 5.4 bn in 2001, Canadian Tire is in comparative terms as large as Home Depot is in the United States, though the Canadian economy is only about one-tenth the size of the US economy.
Canadian Tire’s franchised stores reach 85 per cent of the Canadian population.
The following figures make clear just how dominant the Toronto-based company is:
More than half of all Canadians go shopping on a monthly basis in a Canadian Tire store, and 40 per cent of customers shop there once a week.
The company ranks top in customer satisfaction.
It has the largest assortment of products in the categories of tyres, gardening supplies, barbecues, coolers, household tools, hockey and basketball equipment, bikes and helmets, fishing gear and camping equipment.
Altogether the Canadian giant operates 1 000 stores of different kinds, though its core business remains the 452 company-owned and franchised outlets, which sell tyres, automotive supplies and a full range of DIY products.
Canadian Tire is on a roll. New-format stores generate higher average transactions, resulting in annualised sales of Can $ 14.8 mio for the first quarter. Traditional stores achieved average annualised sales of Can $ 8.3 mio.
The company is working for higher market penetration in the household category, where it is aiming to attract more female customers. Its new “Kitchen Place” offers expanded ranges of housewares and cleaning supplies, and the beginnings of giftware.
The group claims to offer three specialist stores under one roof (automotive, sport and leisure, plus home improvement). The kitchen section is designed to soften the image somewhat. Canadian Tire regards itself as positioned halfway between discounters and specialist stores, and classifies Home Depot as a specialist hardware business.
Kitchen Place is designed to increase the number of women customers.
The company’s strategy is to “out-assort” the discounters and offer superior merchandising, while also offering better locations and greater shopping convenience than specialist shops. Reg McLay, vice president of home and leisure products, says, “We offer some of the look and ambience of specialist stores but with the pricing strategy of discounters.”
Company representatives emphasise that 90 per cent of Canadians live only 15 minutes away from a Canadian Tire store. Its franchised associate stores serve 85 per cent of the population. This is regarded as a big marketing advantage, given the enormous size of the country and the…