Extreme Make-Over Canada: Competition Presses Retailer - Tire Review Magazine

Extreme Make-Over Canada: Competition Presses Retailer

Canadian Tire is back in the e-commerce business, and is restarting its efforts with a focus on tires.

And this renewed focus is also bringing a make-over to its in-store tire and service centers.

The mega-retailer dropped e-commerce in 2008, claiming that its customers were well served by its 489-store system. At the same time, though, the Tire Rack and other online e-tailers grew their Canadian business, which forced a shift in both consumer expectations and Canadian Tire’s attitude.

In recent months, the encroachment of American retailers has rattled Canadian Tire. Walmart announced plans to build some 40 supercenters in Canada, and Target bought some 200 Zellers stores.

The Canadian Tire move also comes on the heels of European tire e-tailer Tire & Co. was open for business in Canada. The 10-year-old e-commerce business said it has signed agreements with 107 installers – mostly independent dealers – in three eastern provinces.

“We know the tire business is quite competitive,” Glenn Butt, Canadian Tire’s executive vice president of customer experience and automotive, told the Toronto Star. “We know customers have choices. We know they spend a lot of time researching and in some cases ordering online.”

Canadian Tire also unveiled its “automotive center” make-over plans, which, according to Butt, will “provide better and faster service.”

The project will be piloted in Ontario, and the redesign will include a drive-through “reception area” where a technician will consult with customers while they are still in their vehicles, a significant upgrade in store operation and service technology, and more emphasis on accessories like vehicle electronics, video screens and GPS systems.

“This is big news for Canadian Tire. It’s going to be a very, very different experience,” Butt told the newspaper.

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