Canadian Tire’s Earnings Fumble Sees Retail Tech Investment Slip

Canadian Tire reported disappointing fourth quarter and full-year 2023 results, but CEO Greg Hicks assured investors that the company is committed to its Better Connected strategy. The company has invested CAD 1.4 billion in capital since introducing the strategy in March 2022, primarily targeting growth initiatives such as store renovations, distribution centers, and technology upgrades. The company’s revenue decreased by 16.8% in Q4, with Canadian Tire Retail (CTR) comparable sales down 6.8%. Despite challenges in 2023, the company remains focused on its technology investments, such as electronic shelf labels, pick-up lockers, and a generative AI shopping assistant. Canadian Tire has also made significant investments in its supply chain, including new automated technology in its Montreal and Calgary distribution centers and the opening of a multi-banner omnichannel fulfillment distribution center. The company plans to continue investing in its supply chain and digital platform to enhance the customer experience and drive future growth.