president, canadian tire retail · 2017-09-05 · 2 py y time by or on its behalf, ... growth •...

CIBC Investor ConferenceCIBC Investor ConferenceFebruary 23, 2010

Mike ArnettMike ArnettPresident,Canadian Tire Retail

F d l ki t t tForward-looking statements

This disclosure contains statements that are forward-looking These forward-looking statementsThis disclosure contains statements that are forward looking. These forward looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “suspect”, “outlook”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “forecast”, “objective” and “continue” (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results Certain material factors or assumptions are applied in making forward lookingresults. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the body of this document, as well as in the Q3 2009 Management’s Discussion and Analysis (“MD&A”). The forward-looking information contained in this document is presented for the purpose of assisting the Company's security holders and financial analysts in understanding its financial position and results of operations as at and for the periods ended on the dates presented and the Company’s strategic priorities and objectives, and may not be appropriate for other purposes. When relying on the forward-looking statements to make decisions with respect to the Compan in estors and others sho ld caref ll consider the foregoing factors and otherthe Company, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. The Company does not undertake to update any forward-looking statements, including those statements that are incorporated by reference herein, whether written or oral, that may be made from time to

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p y ytime by or on its behalf, except in accordance with applicable securities laws.

C di Ti C tiCanadian Tire Corporation…

A network of businesses

CTR479 stores

CT Automotive• 5,500 service bays and the largest

Canadian Tire Retail is Canada’s most shopped general merchandise retailer

y gassortment of parts, accessories & tires

• CT Petroleum is one of the country’s largest independent retailers of gasoline

• 87 PartSource stores

Financial Services>5 million MasterCard accounts

Offers Canadian Tire-branded credit cards plus various loans

Mark’s378 stores

Leading clothing and footwear retailer often credit cards plus various loans,

insurance and deposit productsfootwear retailer, often

co-located with CTR

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CTC t t i f kCTC strategic framework

OUR GOALS

Improve retail ROIC and strengthen our brandp g

OUR STRATEGIC IMPERATIVES

Strengthen the core retail business

Strengthen our supporting

businesses & align them to CTR

Create a high-performing,

customer-focused organization

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CTR th t il b iCTR – the core retail business

CTR is Canada’s most shopped general merchandise retailer and a leader in each of its core product categories - Automotive, L i d HLeisure and Home

• Located to serve more than 90% of the Canadian populationp p

• Modern store network – 400+ new/rebuilt stores since 1994

• One of Canada’s most trusted brands

• Focus on everyday needs – jobs and joys

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St th th k CTR tStrengthen the core – make CTR great

• Build capability for continuous concept renewal• Focus resources on key categories

Drive sustainable growth

• Improve core processes and IT infrastructure• Create a high performance culture• Leverage existing retail square footage and supply

chain capacity

Improve productivity

chain capacity

• Develop a better understanding of customers• Create more consistent customer experience

Transform thecustomer experience Create more consistent customer experiencecustomer experience

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• Small market storeDrive sustainable

growth • Flyer program – drive traffic (everyday essentials, door crashers) while supporting core businesses


pp g

• Grow traffic-driving categories (eg. pet care, household cleaning)

Transform thecustomer experience

• Focus investments in businesses with significant growth potential (eg. storage & organization, backyard living,

i )customer experience exercise)

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S ll M k t StSmall Market StoreOpportunity for growth in underserved markets

• Opportunity to generate $5-$9 million in retail sales per store

• Low-cost building – great use of outdoor space; intense merchandising

• Most include Mark’s Work Wearhouse• Most include Mark s Work Wearhouse in the store and a CT Petroleum gas bar

• Sales performance and customer feedback continue to be very positive

• 9 open to-date, 5 more planned for this yeary

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• Investing in technology to improve core merchandising processes

• 75+ projects complete or underway to renew IT infrastructure


• Streamlined organizational structure and accountabilities across all divisions, levels


levels

• Capital-light concept renewal to increase sales/square foot and efficiency of store

tiTransform the

customer experience operationscustomer experience

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• Clear vision of desired in-store customer• Clear vision of desired in-store customer experience

• Infrastructure and processesstrengthened corporate support team– strengthened corporate support team

– operational excellence program– focus on in-stock

M t t l d


• Measurement tools, programs and practices

– new store audit, customer satisfaction index (CSI)


index (CSI)– performance improvement program for

under-performing stores

• Dealer engagement/buy inTransform the

customer experience • Dealer engagement/buy-incustomer experience

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A number of key strategies support all three objectives:


• Loyalty/Customer-Centric Retailing

• Automotive strategy

S t St


• Smart Store

Transform thecustomer experiencecustomer experience

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L lt /C t C t i R t ili (CCR)Loyalty/Customer Centric Retailing (CCR)

Customer Centric Retailing (CCR)g ( )• Leverage our 500,000 points of daily customer data and feedback

to better understand our customers and make better decisions

• Drive sales and margins by systematically capturing analyzing• Drive sales and margins by systematically capturing, analyzing and applying customer insights across each part of our business

Loyalty• Evolve Canadian Tire ‘Money’ – one of

Canada’s most popular loyalty programs – to enable the collection of shopping data and to tailor offerings

• Pilot new program by Q4, 2010/early 2011

• Enhance customer loyalty and connection to brand

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A t ti t tAutomotive strategyBuilding our cornerstone business

• Key competitive advantage, central to our brand image and our single most

i i b i t itpromising business opportunity

• Aligned all our automotive resources under one common strategy and leadership: automotive hard parts, accessories, service centres, tires and all other aspects of automotive, P tS P t lPartSource, Petroleum

• Improve the customer experience, especially in automotive servicep y

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S t StSmart Store

• Drive growth and improve sales productivity by reallocating space to high growth and ‘cornerstone’

t icategories– eg. storage & organization,

sports & recreation

• Added traffic-driving businesses– eg. pet foods, food test

I d t i• Improved customer experience –easier navigation, better signage, logical adjacencies, enhanced service featuresservice features

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S t St d li i ltSmart Stores are delivering results

Timing Stores Opened Sales ResultsTiming Stores Opened Sales Results2008 2 replacement stores Up 42% and 23% in first year

2009 4 expansion stores Up an average of 14% and 5 replacement stores 30% since opening

Nov. 2009 25 retrofit stores Tracking in-line with expectations

• Sales growth is being driven by a healthy balance of traffic and average transaction increases

expectations

• Capital-light retrofit projects costing less than $300K per store

• Extremely positive customer feedback

• 60 retrofits and 7 major projects planned for 2010

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QUESTIONS & ANSWERSQUESTIONS & ANSWERS

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CIBC Investor ConferenceCIBC Investor ConferenceFebruary 23, 2010

Mike ArnettMike ArnettPresident,Canadian Tire Retail

president, canadian tire retail · 2017-09-05 · 2 py y time by or on its behalf, ... growth •...

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