Canadian Tire continues to innovate

Article Excerpt

CANADIAN TIRE CORP. $41 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 81.5 million; Market cap: $3.3 billion; SI Rating: Above average) operates 473 stores that sell automotive, household and sporting goods. It also operates 82 PartSource stores (auto parts), 364 Mark’s Work Wearhouse stores (casual clothing) and 269 gas stations. The company continues to profit from its ongoing plan to make its stores more appealing to shoppers, including wider aisles, better signage and lighting. In the three months ended September 27, 2008, earnings per share rose 12.7%, to $1.42 from $1.26 a year earlier. These figures exclude unusual items. Revenue grew 10.2%, to $2.3 billion from $2.05 billion. Same-store sales rose 2.0%, mainly due to strong demand for winter merchandise. Canadian Tire aims to build on the success of these new stores. It’s now testing several new store formats. These include the “Smart” store, which features more customer help desks and other ways to help shoppers quickly find what…