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CIBC Retail and Consumer Conference C di Ti R t ilT lt Canadian Tire Retail T emplate August 2010 Glenn Butt Executive Vice President Executive Vice President, Customer Experience and Automotive Canadian Tire Corporation, Limited 1

CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

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Page 1: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

CIBC Retail and Consumer Conference

C di Ti R t il T l tCanadian Tire Retail TemplateAugust 2010Glenn Butt

Executive Vice PresidentExecutive Vice President,Customer Experience and AutomotiveCanadian Tire Corporation, Limited

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Page 2: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

F d l ki I f tiForward-looking InformationThis 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 andlight 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

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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.

Page 3: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Strategic Priorities 5 Year Financial AspirationsStrategic Priorities

• Strengthen the core retail business and build the

5 Year Financial Aspirations

Retail Sales Growth 3-5%business and build the Canadian Tire brand

• Build a high-performing

Retail Sales Growth 3 5%

Consolidated Operating EPS 8-10%organization

• Focus on productivity improvements to drive

p g

Retail Return on Invested C it l

10%+improvements to drive same store sales

• Relentless focus on the t

Capital

Return on Receivables 4.5-5.0%customer

Leading to

3TRS (includes dividends) 10 – 12%

Page 4: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Automotive: Heritage Business

272 Gas Bars 478 Auto Counters 87 PartSourcestores

4CTR

5,500 Service Bays

1,100 Express Auto Parts deliveries a week

Page 5: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Vision: Be Canada’s Auto AuthorityVision: Be Canada s Auto Authority

• Superior customer experience

• Timely availability of auto parts and tires

• Industry-leading technology

• Dominant auto accessory assortment

We’ll get there by:

• Investing in infrastructure capabilities across the business

• Training and development programs

• Innovative marketing programs and campaigns

• Dealer and store team engagement

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Page 6: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Our Team

Glenn Butt, EVP, Customer Experience and Automotive

Allan MacDonald, Senior Vice-President, Automotive

Jim McCown, Vice-President, Auto Parts

Andrew Davies, Vice-President, Automotive

Michael Ferris, Vice-President, Auto Service, Support and Operations

B All P id t C di Ti P t l

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Bruce Allen, President, Canadian Tire Petroleum

Page 7: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Growth InitiativesGrowth Initiatives

1 A t ti I f t t (AI)1. Automotive Infrastructure (AI)

2. Project Accelerate

3. Tires

4. Accessories

5. Auto Service

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Page 8: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

1 A t ti I f t t1. Automotive Infrastructure

Initiative that will update our technology backbone

• Improved automotive customer experience

• Improved and streamlined processesp p

• Enhanced speed through emergency auto parts shipped from PartSource

• Superior product knowledge

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Page 9: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

2. Project Accelerate

Gets the right part to the right place at the right time

Quicker Delivery

Better Training and Tools

E h d Ad ti iEnhanced Advertising

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Page 10: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

3. Tires

Access

AssortmentTire Kiosks

Special O d

Reduced W it Ti Orders

Brands

Wait Time

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Brands

Page 11: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

4. AccessoriesAn opportunity to grow share

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Page 12: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

5. Auto Service – Biggest Growth Opportunity

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Page 13: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Automotive Support

A team of 30-plus Automotive Support Managers focused on delivering sales results and an outstanding automotive customer experiencesales results and an outstanding automotive customer experience

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Page 14: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Innovative Marketing Initiatives

Marketing strategy highlights solutions rather than individual product:

• Launch of the Canadian Tire Automotive Catalogue

• New on-line parts lookup capability as well as on-line tire lookup

• Field team will work closely with Dealers to execute new marketing initiatives

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Page 15: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Reasons To Believe

• Focus on our heritage business

O• Organizational structure to support strategy – all automotive assets under single leadership

• Investments in our people technology and our processesInvestments in our people, technology and our processes

• Enhanced reporting and measurements leading to greater accountability

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Page 16: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

I i C t E i CTCImproving Customer Experience across CTC

• Defined vision and purpose for the customer

• Engaged our Dealers and store teams

• Developed training programsp g p g

• Invested in technology enhancements

Key Initiatives:Key Initiatives:

• Customer Satisfaction Index / store audit program

• In store in stock program• In-store in-stock program

• Customer return policy

• B t ti ti l ll

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• Best practice operational excellence

Page 17: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Enhancing Customer Connection to Canadian TireEnhancing Customer Connection to Canadian Tire

Customer-centric retailing and loyalty

Concept renewaly y

• Maximize understanding of how customers shop across the enterprise

Smart store

• Highlights heritage businesses• 35% of store network by end of 2011enterprise

• Take our customer relationship to a new level

35% of store network by end of 2011• Dealer participation at 100% in 2011

Automotive renewal

• Guide future store concepts

• Tailored assortments

• Breakthrough concept in development

• Showcase dominance and authority

• Reward high-value customers

Showcase dominance and authority• Create interesting and inspiring

shopping environment

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Page 18: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

A t ti F t StAutomotive Future Store

Drive-in Reception Area

Branded Drive thru

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Branded Drive-thru Oil & Lube

Page 19: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

A t ti F t StAutomotive Future Store

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Page 20: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

A t ti F t StAutomotive Future Store

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Page 21: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

A t ti F t StAutomotive Future Store

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Page 22: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

A t ti F t StAutomotive Future Store

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Page 23: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Dealers are Engaged

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Page 24: CIBC Retail and Consumer Conference - s22.q4cdn.com€¦ · CIBC Retail and Consumer Conference CdiTiRtilT ltCanadian Tire Retail Template Glenn ButtAugust 2010 Executive Vice PresidentExecutive

Questions?

For more informationwww.corp.canadiantire.ca/EN/investors p

[email protected]

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