Walmart has often been titled as the king of the retail business sector. For many decades it has ruled all alone but things are no longer in the court of Walmart anymore. It is finding itself tough slogging in the retail business. For the first time since its inception in the 1970s, the company’s worldwide operations suffered a profit decline recently. Walmart has appeared to been particularly disappointed by its performance in Canada due to major competition by Canadian Tire.
Canadian Tire Corporation, Ltd, is one of Canada’s most recognized and popular retail franchise. Over the years the company has flourished to extreme extents and has a store presence in almost every province and territory of Canada. The company has recently opened its largest store in the country which has taken the retail sector by storm. There are various reasons that have added to the increased popularity of Canadian Tire as opposed to Walmart. Some of the major ones are jotted below.
Canadian Tire has opted for a rather traditional store look. They have moved away from the tired and cluttered warehouse look to a brighter and traditional one. What gives it a more attractive look is the wider aisles and more light which makes the stores spacious as well as brighter for the customers.
Majority of comes start off their businesses with successful franchise techniques but this has not been the case for Canadian Tire. They have a clear cut goal which revolves around and focuses on customers. Whether it is about selecting products or site designs, customers are highly considered by the company. Shelves are well stocked and ample of variety is offered. Value for money is also provided. It can thus rightly be said that Canadian Tire is giving its community what they want and need in order to gain success in the market.
Canadian Tire is making a lot of gain across all of its fundamental businesses. A major thing that is captivating the customers and driving the sales high is the digital investments which connect brick-and-motor campaigns with the online shopping experience. The company has also created an e-version of Canadian Tire money which has enabled the customers’ access to CT money through the brand’s app where rewards and offers can also be availed.
Another factor that catches the eye is that Canadian Tire provides a seasonal department. This means that customers can easily click and drag virtual products onto a virtual deck to get a feel for the outside look before they can actually buy it.
Canadian Tire is highly talked about because of its valuation. What distinguishes is that it trades at less than 17 times earnings thus offering a reasonable amount of discount to customers.
Diversity of brands
The company has done a terrific job of bringing various diverse brands under one single roof. In order to do this, the company has bought Mark’s Work Warehouse and Forzani Group. Moreover, it has also launched PartSource which aims at providing customers with auto parts. Each of the brands offered by Canadian Tire serves a specific niche which is very crucial to the company’s success.