Here’s How Canadian Tire Is Investing Big in Ecommerce
As we move ever further from the worst days of the COVID-19 crisis, brands the world over are adjusting their business models to better meet the needs of the post-pandemic customer.
For many retail-based companies out there, this means investing in and expanding their online offering. During the coronavirus crisis people become more accustomed than ever before to being able to acquire goods online, and this expectation is continuing, even though much of the danger has now passed.
To acquire new customers and retain existing ones, retailers are making serious roads in reinforcing their online business through innovative new features and offerings – from loyalty schemes to personalized services.
Canadian Tire
One such retailer is Toronto, Ontario-based automotive, hardware, sports, leisure, and houseware brand, Canadian Tire which has recently announced its intention to invest a staggering $3.4 billion in its online business to drive even more engagement with its ecommerce arm.
The main thrust of the investment will see Canadian Tire spend money on expanding its innovative rewards program and expand the premium membership service it introduced in 2021. The company also plans to add more than 12,000 new products to its online offering, giving its customers more choice than ever before.
Canadian Tire reported a 30% surge in ecommerce sales during 2021 and is committed to making sure its customers are able to experience the same level of high-quality service when shopping online as they do when visiting its physical locations. Canadian Tire said it expects to grow same-store sales, excluding fuel, by more than 4 per cent annually by 2025, with a profit target of more than $26 per share.
Membership Program
Canadian Tire began testing its innovative membership program during 2021, taking cues from Amazon’s Prime subscription service. Customers who subscribed to Canadian Tire’s premium membership package get access to a range of features to better serve its customers.
Alongside, ecommerce staples such as extra loyalty rewards for purchases and free home delivery on all online orders, the Canadian Tire premium membership program also gives subscribers 12 months free access to Bell Media’s Crave streaming service in a clear mirroring of Amazon Prime’s video streaming platform and other retail giants such as Walmart, which has its own similar offering.
During the early days of the pandemic, Canadian Tire found it difficult to keep pace with other ecommerce brands, but, thanks to innovative ideas such as this, combined with the willingness to invest in such programs, the retailer is now better competing in this lucrative space.
"I think there was some question about our ability to compete in a digital world pre-pandemic, and I don’t think anybody should doubt our ability now," said Canadian Tire Chief Executive, Greg Hick at the time the membership program was first announced. "What I can tell you with certainty, is that we are buying inventory to support incremental growth in the business. We’re ready and the [store] dealers are ready."
Dubbed Triangle Select, the premium subscription service is no longer accepting new members – which is presumably why Canadian Tire wants to expand the service with this fresh investment. Customers who access the program get exclusive offers on Triangle credit cards as well as the chance to earn CT Money – Canadian Tires’ loyalty point scheme – on purchases with the company’s portfolio of brands.
Customers also get a $50 welcome gift which they can select from a predetermined range, as well as a range of shipping bonuses, including shipping fee waived on all qualifying online purchases over $50 (before taxes) from Mark’s, L’Équipeur, and Sport Chek (up to the first $20 in shipping fees per order), and shipping fees reimbursed in CT Money (before taxes) on the first five Canadian Tire ship-to-home purchases (up to the first $12 in shipping fees per order).
Subscribers also get 25% off at hellyhansen.com on a qualifying pre-tax purchase, available on one purchase during the subscription, and excluding sale items.
Final Thoughts
It’s a time of great challenge and opportunity for retailers as customers emerge from the global COVID-19 crisis and try and return to some semblance of normality. Brands need to make significant investment, if they are to capture the attention of the post-pandemic customer and enjoy repeat business for years to come.
Investing in loyalty schemes and premium subscription services is a fabulous way to achieve this. Amazon Prime has demonstrated there is a market for this kind of offering and it’s encouraging to see other retailers, such as Canadian Tire, also embracing the concept.
You can hear Canadian Tire Corporation Manager of International Ecommerce, Jasmin Shirazi speak at eTail Canada 2022, taking place in September, at the Hyatt Regency Toronto, ON.
Download the agenda today for more information and insights.