Canadian Tire to launch trial run of home delivery this year, CEO says

TORONTO — Canadian Tire will launch a trial run with home delivery at the end of this year, its CEO said Thursday in what is likely a response to the rising threat posed from competitors such as Walmart and Amazon.

The move marks a reversal for the national retailer, which for years had expressed no interest in home delivery, saying there was no need to offer it when 90 per cent of the country’s population lives within 15 minutes of one of its stores.

“It’s a big move,” Canadian Tire CEO Stephen Wetmore said in an interview Thursday following the company’s annual general meeting and latest earnings release.

Details are scant. Wetmore said the company needs to pick a market, decide on how many of its nearly 500 stores will participate and which products will be eligible for home delivery.

The trial run will be assessed to determine whether home delivery should be rolled out across the country.

“It’s really complex with CTR (Canadian Tire retail),” he said.

About 100 Canadian Tire stores across the country already offer limited delivery on a small number of products. Delivery is also already available at nearly all of Canadian Tire’s other retail banners, including Mark’s, Pro Hockey Life and Sport Chek.

Canadian Tire has also offered a pay-and-pickup option since it rolled out its e-commerce website in 2014.

The retailer is likely feeling the squeeze from the likes of Walmart Canada and Amazon, which offer same-day and sometimes free delivery.

Wetmore recently returned as the head of the company in July, replacing Michael Medline, who had been in the top job for less than two years. Since his return, Wetmore’s focus has been on improving Canadian Tire’s e-commerce and data analytics strategy.

He said Canadian Tire has been in recent talks with retailers, primarily in Europe, to sell its private brands including home decor lines such as Noma and Canvas.

The company isn’t eyeing any international expansion with its store banners at this point, Wetmore said, but it is open to more mergers and acquisitions abroad.

On Wednesday, Canadian Tire announced it purchased Padinox, the company that owns the Canadian rights to the Paderno kitchenware brand, for an undisclosed amount.

Earlier Thursday, Canadian Tire reported that its profit jumped 26 per cent in its latest quarter to $107.9 million, or $1.24 per share, for the 13-week period ended April 1. That compares with $85.6 million, or 90 cents per share, for the same period a year earlier.

Its revenue climbed 7.6 per cent to $2.75 billion.

The improvement came despite warmer weather in January and February that hurt sales in outerwear, accessories and boots and a cold start to spring that took a bite out of sales in bicycles, running shoes and casual clothing, the company said.

Its shares were down 5.4 per cent in late afternoon trading on the S&P/TSX composite index, trading at $157.32.

Just Posted

Red Deer College waiting for feds to finalize marijuana legalization

Like businesses, Alberta and municipal governments, Red Deer College is waiting for… Continue reading

Class size only part of the problem say Central Alberta teachers

Though the Alberta auditor general’s report points out that classroom sizes continue… Continue reading

Lacombe County promoting crime prevention measures

County pushing Crime Prevention Through Environmental Design principles

Red Deer doctor concerned about patient transfers to rural hospitals

Family physician says the move creates less incentive for expansion at Red Deer hospital

Fire permit season begins in March

Earlier springs in last few years prompted Alberta government to move up fire permit season

WATCH: Red Deer’s River Bend upgrades officially open

River Bend Golf and Recreation Area is the latest venue to be… Continue reading

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Stores make push in scan and go tech, hope shoppers adopt it

NEW YORK — Shoppers at self-checkout lanes scanning all their groceries after… Continue reading

‘Stars seemed to have aligned’ for new Halifax CFL bid, commissioner says

HALIFAX — CFL fans in Halifax have been told the league is… Continue reading

The language of ‘Black Panther’? It’s real. Give it a try.

OTTAWA — The military’s top general has promised to get to the… Continue reading

New execution date set for Georgia’s ‘stocking strangler’

ATLANTA — A man known as the “stocking strangler,” who was convicted… Continue reading

Man says he kicked Chevy Chase in self-defence in dispute

SOUTH NYACK, N.Y. — A New York man says he kicked Chevy… Continue reading

Supporters of Tina Fontaine’s family march in Winnipeg to support her family

WINNIPEG — Hundreds marched through the streets of Winnipeg on Friday in… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month