The company also has its eyes on loyalty — a significant source of profits for Canadian Tire Corporation. Hicks said loyalty sales are up 7% via its Triangle Rewards loyalty program, and loyalty penetration is approaching 60% for the year.
Canadian Tire Corporation has been able to glean valuable insights from the data it garners via its loyalty efforts. For example, the company has found that lower- and middle-income members have accelerated their spend, while higher-income member growth softened.
“Additionally, every time a registered member shops or redeems, we learn more about them, which helps us determine how best to deliver value to them in the future,” said Hicks.
Initiatives in this space include driving registration of new members, jumping on last year’s success rates — the company saw growth from its registered members outpace growth from other loyalty members in 2022, driving a $800 million increase in loyalty sales.
“Our second focus area within triangle is helping customers earn CCTM [points] faster through the use of strategic promo offers and driving cross-shop engagement across our banners,” said Hicks.
Up next for the company is the launch of a mass marketing campaign for its Triangle Select subscription model, for which Canadian Tire Corporation ran a beta test last year.
“What we learned is that Select really accentuates our differentiators, our own brands, our physical stores, and Canadian Tire Money,” said Hicks. “Subscribers earn ECTM [points] faster, in large part, thanks to the program's ECTM accelerator offers. For example, in our beta test the average member's annual incremental earnings through Select-specific bonuses were more than three times the subscription fee.”
Overall, however, Hicks said the company has more tools like first-party data through which it can optimize promos and send offers directly to members rather than relying only on mass marketing.