TORONTO - Canadian Tire Corp. (TSX:CTC.A) plans to invest an average of $575 million annually over the next three years on business improvements, with money going to new digital technology as well as expansions and upgrades to its store network.
"We can unlock tremendous growth in our existing businesses," said Michael Medline, Canadian Tire's president and incoming chief executive.
"Each of our businesses has a clear three-year vision for growth – and we're already seeing the early results of changes that were initiated in recent years."
The Toronto-based company is one of Canada's largest retailers, operating under banners that include Canadian Tire, Mark's and various sports stores including Sports Chek.
Among other things, the company aims to grow Canadian Tire's revenue by three per cent a year. It expects faster growth at Mark's (five per cent average annual growth) and FGL Sports (nine per cent).
Canadian Tire also said it also intends to buy back an additional $400 million of its class A non-voting shares by the end of 2015, and will maintain its current dividend policy.
"Our core businesses will have the capital they need to grow and compete — including increased investments in digital and technology. We are continually evaluating acquisition opportunities, but we have proven that we're slow to the trigger and are vigilant in our selection criteria," Medline said.
Shortly after the parent company's statement, Sport Chek — part of FGL Sports — announced a strategic partnership with the Scene loyalty program run by Canada's largest theatre chain, Cineplex (TSX:CGX), and Scotiabank (TSX:BNS).
The Scene program will launch nationally in mid-November at more than 180 Sport Chek stores.
Canadian Tire class A shares closed Wednesday at $117.08 — near the high end of their 52-week range. At that price, Canadian Tire's market value is just under $8.8 billion.