Canadian Tire

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Original Content Alert

The following article was researched and written by Lovedeep Grewal. More contributors.

Significance of Canadian Tire

The Canadian Tire Corporation is one of Canada's own major retail business, and has not been bought out by an American corporation. It is dedicated to maintaining its Canadian identity. Soon as you walk into your local Canadian Tire store, you see the red color portrays through out the store, which gets you the feel of Canadian store. The fact that it is a Canadian corporation that is surviving and fighting head to head competiton from American enterprises, is a good enough reason to shop at this flamboyant company. It operates 423 stores and 202 gas stations operating through a subsidiary, it gives Canadians a chance to be a part of this corporation by not just employing them, but also by franchising stores. It is a well known company that has achieved great success over the years since it opened its doors in 1922.

Background for Canadian Tire

Canadian Tire Corporation Limited, with headquarters in Toronto, is a wholesaler and merchandiser of automotive products, household goods and sporting goods. It started in Sept 1922 as the Hamilton Garage and Rubber Company, founded by brothers John W. and Alfred J. Billes. The brothers capitalized on the growing auto trade, mailing a merchandise price list to every car owner in the province. They named their company Canadian Tire Corp Ltd. in 1927. Canadian Tire was one of the first companies to introduce the concept of the dealer-owner, who would own his store and purchase merchandise from the parent. (The Canadian Encyclopedia, 1997:1)

In 1934, Canadian Tire opened its first official associate store in Hamilton, Ontario-serving as a catalyst for the development of a nationwide network of dealer operated Canadian Tire Associate Stores. Today there are more than 390 Canadian Tire Associate Dealers operating over 430 Associate Stores. These entrepreneurs serve an active role in communities nationwide by supporting the local economy and community events and programs. The catalogue proclaims that Canadian Tire is the "largest direct automotive supply house in Canada." Product offering is diversified to meet the changing needs of customers, and now includes camping equipment, radio supplies and a variety of private house brand automotive accessories. (Canadian Tire, 1997:1)

Canadian Tire is a proud Canadian Company, that has not been bought out by an American enterprise. It is one of the only few that are surviving today. It has survived the onslaught of US rivals, it has managed to fight off the invading Home Depots and Wal-Marts. Canadian Tire is very price competitive, its there guarantee "if you find a lower price anywhere else they will lower it by ten percent". Even with all the competition it is Canada's leading hard goods retailers that consolidated retail sales of $5.8 billion in 2002 and approximately has 45,000 employees .

"The Tire's survival has always depended on doing things a little bit differently. Its product mix of automotive parts, sports and leisure products, and home wares "defies all logic," says industry watcher Rob Gerlsbeck. "It's so bizarre a store concept that it has never been replicated anywhere else, even in the US." But the chain has also implemented some ground-breaking retail concepts- -for example, offering coupons in the form of cash. It doesn't matter that Canadian Tire's funny money, first introduced at gas bars in 1958, most often gets forgotten in glove compartments. It's the most successful loyalty program in Canadian history. The chain was also the first retailer to get a MasterCard licence."(Holloway, 2003:80)

Canadian Tire is a dedicated corporation that is committed to fulfil its customer's needs. Due to their dedication and commitment, today 85% Canadians live within 15 minutes of a Canadian Tire store. This flamboyant company's dedication, has achieved its success. They are proud Canadians that have served their country well and will continue to do so.

Bibliography for Canadian Tire

• Canadian Tire Corporation Limited. Toronto. 2003. <http://www.canadiantire.ca/>.

• Holloway, Andy. "Canadian Tire" Canadian Business. 09-15-2003:80

• Marsh H., James. "Canadian Tire Corporation" The Canadian Encyclopaedia. 1998ed.

• Provinent case Study. Toronto. 2003. <http://www.provinent.com/content/common/casestudy_canadiantire.htm>.

• Rajala, Wendy. "Market Conditions ...." Computing Canada. 03-01-1998: S12(1)