New Barton Canadian Tire 'smart store'
February 13, 2009
Lisa Grace Marr
The Hamilton Spectator
http://www.thespec.com/News/Business/article/512882
The new Canadian Tire store on Barton Street is a clever development.
Lisa Gibson, spokesperson for Canadian Tire, said it will be a "smart store" -- the third in a pilot project by the iconic retailer in addition to stores in Welland and Ottawa.
Smart stores offer everything from clothing (in a Mark's Work Wearhouse inside the store) to groceries to an expanded assortment of fitness products and nutritional supplements. Not to mention a renewed focus on customer service.
"We're trying to find ways to give customers a more compelling experience," said Gibson.
The success of these new stores and another, new format smaller market store for rural areas, may prove critical to the firm's success, significant given the news yesterday about its fourth-quarter earnings.
Canadian Tire announced yesterday its net profit in the fourth quarter fell nearly 23 per cent to $101.2 million. But sales increased as severe winter weather drove customers to its stores for snow shovels, ice salt, industrial clothing and other goods.
It reported its net income fell to $1.24 per share, down from a net profit of $131.3 million, or $1.61 per share at the same time in 2007. The decline reflected accounting provisions and higher spending at the company's main Canadian Tire division.
But it was Canadian Tire's retail store division that accounted for most of the company's operating revenue - $2.36 billion, up 9.1 per cent from $2.17 billion a year ago.
The company's petroleum division, which operates gasoline bars and convenience stores, had lower gross operating revenue, which fell by 4.6 per cent to $414.3 million from $434.1 million.
Its adjusted earnings before income tax increased to $6.3 million from $4.4 million.
Mark's Work Wearhouse, the company's clothing division, contributed $355.7 million in gross revenue, up 9 per cent from $326.2 million in the fourth quarter of 2007. Its adjusted earnings before income taxes rose by 7.4 per cent to $72.2 million from $67.2 million.
"Wherever possible we will put a Mark's inside a store," said Gibson.
The 105,000-square-foot store on Barton will host a Mark's, but it will also offer some groceries: frozen foods such as burgers, dry goods, milk and bread and other convenience food.
The stores also feature customer pick-up, for the times when you buy a patio set that won't fit in the cart next to the box of light bulbs.
It will also have an auto centre, garden centre, gas bar and a series of boutiques inside with specialized customer service desks.
Still, Canadian Tire said yesterday it's worried about the impact of the growing recession on its business and said it won't provide profit and revenue predictions for the year due to the volatile economy.
Locally, the Canadian Tire on Barton is a critical piece of the overall redevelopment of Centre Mall, which began last year.
The formerly enclosed mall is slowly being taken apart while new sections open, featuring a Zellers, Metro, several banks, Shoppers Drug Mart, The Beer Store and several other smaller stores and offices. A Boston Pizza will be part of a stand-alone food court.
The new Canadian Tire is to open this spring.
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