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The third quarter of fiscal 2020 was exceptional for the Canadian Tire Corporation (CTC), which reported excellent sales performance. The company managed to increase retail sales and revenue both in-store and online, due to their unique assortment of multi-category brands.
These brands allows Canadian Tire to operate beyond the automotive sector and also into sports, leisure, hardware and houseware sectors. CTC Canadian retail operations include: Canadian Tire, Gas+, Mark’s, Atmosphere, and FGL Sports (Sport Chek) to name a few. For a complete list of Canadian brands, check out their corporate banners.
Overall CTC total retail operations were strong due to this relevancy of their brand and their commitment to serve their customers. Here’s a quick overview of the Canadian Tire Corporation’s performance in the third quarter (Q3) 2020 as compared to Q3 2019.
Consolidated Comparable Sales Were Up 18.9%
The 18.9% consolidated comparable sales growth in the Q3 is a big success for CTC. The best-performing segment in the quarter was CT REIT (CT Real Estate Investment Trust), which had a comparable sales growth of 25.1%.
That’s in great part thanks to Existing Triangle, which grew by some 400,000 new members in the three months leading to September 26, 2020. Triangle Rewards is a loyalty reward program offered to CTC members. The Canadian Tire e-Money offered through Mastercard has become so popular it’s often referred to as “Canada’s second currency”.
Members can earn and redeem at several of CTC affiliate locations including Canadian Tire, Sport Chek, Gas+, Atmosphere and Mark’s locations. This program has helped both online sales and in-store retail purchases.
Consolidated Retail Sales and Revenue Increased
With a 13.1% growth, CTC had a $510.1 million increase in consolidated retail sales, which includes total sales of the company and their subsidiaries.
In Q3 2020 as compared to Q3 2019, CTC increased its consolidated retail sales by a whopping 19.1%, or $635 million, excluding its Petroleum business.
When it comes to consolidated revenue, the company managed to increase it by 15.3% in Q3 2020, or $479.6 million, excluding Petroleum.
eCommerce Sales Grew 132%
Canadian Tire Corporation was quick to adapt to the COVID-19 pandemic, so it managed to continue serving its customers efficiently across its digital platforms. Their commitment led to a massive ecommerce sales increase of 178% which was led by Canadian Tire Retail (CTR) sector.
As compared to the Q3 2019, the company’s ecommerce sales grew a whopping 211%, which is an increase of $700 million.
CT REIT was top-performing in this segment as well, with an ecommerce sales growth of 178%.
Summary
Canadian Tire Corporation and its subsidaries is just one example of how to achieve excellent retail CRE results regardless of temporary setbacks. CT REIT continues to invest in favourable Canadian retail CRE opportunities that continually bring in high revenue and ROI.
It’s a great inspiration to both domestic and foreign retail CRE investors, as it shows that the market in Canada is more than promising, even during the ongoing pandemic.