Canadian Tire says consumer sentiment ‘soft’ amid trade war, tariffs

Canadian Tire Inc. has reported that consumer sentiment towards its brand remains "soft" as the company navigates the challenges posed by ongoing trade wars and tariffs, according to Greg Hicks, the president and CEO of the company. Despite this, Canadian Tire has managed to boost sales partly due to new AI pricing strategies and its expanding loyalty program.

In the last quarter, overall sales grew by only 0.7 per cent compared to the same period last year. However, the company's comparable sales at Sport Chek increased by 8 per cent and Mark’s by 4.2 per cent. Hicks attributes these sales increases to the company's strategic pricing, lower prices on over 5,000 products determined by its AI tool DaiVID, and a strong loyalty program, Triangle Rewards, which saw a 3.1 per cent increase in sales compared to last year.

The program boasts more than 12 million members, a majority of whom are active. Hicks emphasized that the company's focus is on providing value to consumers, particularly through its loyalty partnerships with businesses like Petro-Canada, RBC, and WestJet. However, Canadian Tire clarified that it does not utilize its AI tools for algorithmic or dynamic pricing, stating that price adjustments are part of a scheduled and planned process.