Canadian Tire Corp. said it is taking aggressive action to preserve its cash position and financial flexibility. The company also noted that online sales at SportChek are running strong amid the coronavirus pandemic as Canadians purchase health and fitness products.

Canadian Tire Retail stores remain open, where permitted, to provide the essential products Canadians need during the pandemic. The safety of customers and employees remains its top priority and several measures have been introduced to reduce the spread of the virus in stores. Stores have reduced hours and are continuing to take precautions with enhanced cleaning protocols. To enforce physical distancing, plexiglass and floor decals have been installed, and the retailer is working to limit the number of customers allowed in-store at any given time.

Canadian Tire said in its statement, “We continue to experience significant increases in Canadian Tire’s eCommerce business across many categories. Last week, with the introduction of Curbside Pick Up, customers were offered another way to same-day shop while maintaining their physical distance. Demand for the new service has been strong during the first week of operation.”

Canadian Tire noted that it previously announced that its Mark’s/L’Équipeur, SportChek, Party City, Pro Hockey Life, National Sports, and PartSource stores have been temporarily closed to the public. While they will remain closed until further notice, these banners are seeing significant e-commerce demand, particularly at SportChek and Mark’s as Canadians purchase health and fitness products and healthcare and industrial apparel. Canadian Tire said, “We are fully committed to helping our employees during this difficult time through financial support for our frontline teams, including a special support payment for our corporate store, distribution and call center employees.”

Canadian Tire is also taking aggressive action to preserve its cash position and financial flexibility, including:

  • Implementing a plan to reduce operating costs at its head office and corporate stores and to reduce working capital across the enterprise;
  • Deferring some of ts 2020 planned capital expenditures in all categories of projects;
  • Pausing the repurchase of shares; and
  • Leveraging its well-established and solid relationships with Canadian banks and its high standing in capital markets to secure additional sources of liquidity should they be required. This is in addition to the existing funding channels available to CTC and its related entities.

“We have long-established ourselves as a resilient organization and we are well-positioned to manage through these unprecedented times. Our multi-category assortment, healthy balance sheet, Triangle Rewards program, credit card value proposition, access to multiple sources of liquidity for all our businesses, and ultimately, the essential role we play in communities across Canada, will serve us well as the country emerges from this current crisis,” said Greg Hicks, president and CEO, Canadian Tire Corporation.

Photo courtesy Candian Tire