Sep. 15, 2010 (Canada NewsWire Group) --
- Faster speed of execution -
- Improving customer experience -
- Moving from 'five inter-related businesses' to 'one company, serving one customer' -
TORONTO, Sept. 15 /CNW/ - Canadian Tire Corporation, Limited (CTC, CTC.a) today aligned operations and senior leadership to execute the Company's growth strategy announced earlier this year. The alignment will focus the Company's leadership on top-line growth, building a world-class customer experience and reducing duplicative costs between 'five inter-related businesses' by operating as 'one company, serving one customer'.
"Today's changes are critical to the evolution of Canadian Tire as a customer-centred, performance-driven company," said Stephen Wetmore, President and CEO. "We have to deliver faster execution of our growth strategy. We have to improve the customer experience. We have to recognize that our customers look to us to provide all the solutions for the jobs and joys of family life - and that means we have to start approaching them as one company, instead of five inter-related businesses. In doing so, we will deliver the top line growth we are capable of, build a world-class customer experience and take unnecessary costs out of our business."
The six principle business categories that comprise the Company include: Living, Fixing, Playing led by Mike Arnett, Executive Vice President, CTC, and President, Canadian Tire Retail; Automotive led by Glenn Butt, EVP, Customer Experience and Automotive; Apparel led by Paul Wilson, President, Mark's; and, Financial Services led by Dean McCann, President, Canadian Tire Financial Services.
Mike Arnett has been promoted to Executive Vice President of Canadian Tire Corporation with expanded responsibilities for company-wide strategic marketing, including the roll-out of the new customer centric retailing and loyalty programs, and brand stewardship. He will also drive a critical element of the Company's productivity program by overseeing merchandise sourcing capabilities for the organization and engaging leading experts to improve the efficiency of the Company's merchandise procurement capabilities, which carries significant opportunity with more than $5 billion in annual expenditures. Mr. Arnett remains President of Canadian Tire Retail.
Glenn Butt has been promoted to Executive Vice President, Customer Experience and Automotive - responsible for the in-store customer experience and store operations at Canadian Tire, leading the Company's integrated automotive business and overseeing the Company's relationship with its 482 entrepreneurial Dealers across the country. This role, which reports directly to the CEO, highlights the emphasis being placed on these three critical areas.
Pat Sinnott, Executive Vice President, Supply Chain and Technology is responsible for the Company's technology and supply chain, which includes both Canadian Tire Retail and Mark's. Reporting directly to the CEO, he has been assigned the leadership of a significant productivity initiative to improve the effectiveness of core processes throughout the organization. The productivity initiative will reduce cycle times and cost, and increase the extent to which groups throughout the organization use common, best-in-class processes that are well supported by commercially available technologies.
At the same time, the Company has made substantial progress in the centralization of its shared service functions - Finance, Human Resources, IT, Legal, Communications & Corporate Affairs, and Corporate Strategy and Real Estate - to reduce duplication of work and remove costs from the organization. These shared services functions will operate as centres of excellence within the organization, providing expertise and services to all six business categories - Living, Playing, Fixing, Automotive, Apparel and Financial Services.
Some senior managers and employees are leaving the Company and as a result, the Company will record a one-time pre-tax charge of approximately $15 million in the third quarter of 2010. The flow through of these cost savings will benefit 2011 performance by approximately $0.11 per share.
Two long-term officers of the Company, Huw Thomas EVP Financial Strategy and Performance, and Stan Pasternak, SVP and Treasurer, will retire over the coming months. Responsibilities will transition to Marco Marrone, EVP Finance and CFO. The Company wishes to express its appreciation to both Huw and Stan for the valuable contributions both have made to Canadian Tire over many years.
The company has scheduled a call with analysts and investors to explain the restructuring in more detail for 9:00am EDT today. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at http://corp.canadiantire.ca/EN/investors, and will be available through replay at this website for 12 months. Call details follow:
<< - Date: Wednesday, September 15, 2010, at 9 a.m - Investor Dial-in No.: 1-888-241-0326 for U.S. and Canada; +1 647-427-3411 for outside U.S. or Canada - Media Dial-in No. : 1-888-241-0394 for U.S. and Canada; +1 647-427-3413 for outside U.S. or Canada - Replay No.: 1-800-642-1687 for U.S. and Canada; +1 706-645-9291 for outside U.S. or Canada (available until Friday, October 15, 2010) - Conference ID: 10143903 >>
This document contains forward-looking information that reflects management's current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our financial position, results of operation and operating environment. Readers are cautioned that such information may not be appropriate for other circumstances.
All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to, statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Often but not always, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made.
By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information and assumptions which are current, reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of the factors - many of which are beyond our control and the effects of which can be difficult to predict - include (a) credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates; (b) the ability of Canadian Tire to attract and retain quality employees, Dealers, Canadian Tire Petroleum agents and PartSource and Mark's Work Wearhouse store operators and franchisees, as well as our financial arrangements with such parties; (c) the growth of certain business categories and market segments and the willingness of customers to shop at our stores or acquire our financial products and services; (d) our margins and sales and those of our competitors; (e) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business disruption, our relationships with suppliers and manufacturers, changes to existing accounting pronouncements, the risk of damage to the reputation of brands promoted by Canadian Tire and the cost of store network expansion and retrofits and (f) our capital structure, funding strategy, cost management programs and share price. We caution that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect our results. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information.
For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the "Risk Factors" section of our Annual Information Form for fiscal 2009 and our 2009 Management's Discussion and Analysis, as well as Canadian Tire's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.
Statements that include forward-looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on the Company's business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.
The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities laws.
ABOUT CANADIAN TIRE
Canadian Tire Corporation, Limited (TSX: CTC.a, CTC) is one of Canada's most shopped general retailers with 1200 locations offering everyday products and services in six major categories - Living, Playing, Fixing, Automotive, Apparel and Financial Services. Our retail operations include Canadian Tire - our core retail and automotive service operation, Canadian Tire Petroleum - one of the country's largest independent retailers of gasoline, Mark's "Clothes that Work" - a leading retailer of men's women's and work apparel, and PartSource - specializing in auto parts. Canadian Tire Financial Services is a Canadian financial institution and leading MasterCard credit card issuer with approximately five million Canadian Tire MasterCard credit cards issued. More than 58,000 Canadians work from coast-to-coast across Canada in retail, financial services and petroleum businesses operated under Canadian Tire brands.
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