General Retail News

[waterloowarrior]

October 29, 2008
Orleans Candian Tire test drives food
By THE CANADIAN PRESS


TORONTO -- Canadian Tire is planning to open two experimental stores in Ontario that will offer an expanded variety of food and other consumable items as part of a new product assortment.

The two stores, which will be in Orleans and the Niagara region city of Welland, will test a new retail concept called the "smart store."

Canadian Tire spokeswoman Lisa Gibson said the stores will open in mid-November and will emphasize "productivity."

She said convenience food items, such as bread and milk, will be one small part of the new concept, which will offer one-stop shopping for customers.

"Our research tells us that (selling food items) will probably increase customer traffic to the store and certainly if someone's in buying other items, if they need milk or bread, it's a great opportunity to purchase it there," Gibson said.

Canadian Tire isn't the first large-format retail store to move into food sales.

Shoppers Drug Mart has described its Nativa Organics line of food as "the biggest success of any kind of product label we have" and Wal-Mart -- which has long sold some grocery items -- now includes fresh produce among its food offerings at some stores.

Retail analyst John Winter described Canadian Tire's move into food and other consumables as "very smart."

"When the customer is there, you try and sell them as much as possible of what they need," Winter said. "It will be a better service to time-pressed consumers."

It remains to be seen whether Canadian Tire and other large-format retailers' movement into food sales will hurt traditional grocery stores, noted Elizabeth Evans, director of the Ted Rogers School of Retail Management at Ryerson University.