Canadian Tire Corporation Powers Up Supply Chain WIth AI and Commits to Long-Term Loyalty Strategy

Liz Dominguez
Managing Editor
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Canadian tire

Canadian Tire Corporation is making strides with its supply chain and loyalty efforts as it looks to operate more efficiently and tap into valuable consumer insights. 

The company is looking to elevate its inventory, recently implementing a new assortment management platform called Tetris to improve CTR’s in-stock position, according to its latest earnings report. 

Greg Hicks, president and CEO of Canadian Tire Corporation, told investors during the call that the solution will help stores build customized assortments and inventory depth at the item level. So far, the artificial intelligence-powered technology has been rolled out to over a third of the network, with plans to launch to remaining locations this quarter. 

“With the help of a committee of associate dealers and a partnership with Montreal-based IVADO Labs, who are world class leaders in AI, machine learning, and optimization,” emphasized Hicks. 

Additionally, the company has gone to great lengths within its in-store initiatives to roll out more automation, reporting that 80% of CTR stores now have pickup lockers and about half have electronic shelf labels. 

Other efforts include elevating online bookings for the company’s new automotive service appointment system (which the company expects to reach 90% of stores offering the capability). And on the e-commerce side, Canadian Tire Corporation is moving toward a single integrated website, rolling out a new digital platform to its Party City banner just a couple weeks ago and to SportCheck this spring. 

Hicks said the company is also focusing on expanding its supply chain capacity via a new distribution center in the Greater Toronto area, which will help improve e-commerce fulfillment rates for its Mark’s and SportCheck banners. 

“Overall, our ongoing investments and focus areas demonstrate how we're providing more value to our customers and enhancing their shopping experience,” said Hicks. 

Strengthening Loyalty and Cross-Banner Engagement

Canadian Tire Triangle Rewards

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.

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