This Retailer Still Has Special Appeal

Article Excerpt

CANADIAN TIRE CORP. $69 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; SI Rating: Above average) is one of Canada’s best-known retailers. It operates 462 stores that specialize in automotive, sporting and home improvement goods. It also operates 259 gas stations, 59 PartsSource auto parts stores and 334 Mark’s Work Wearhouse casual clothing stores. New stores fueled sales gains In the mid-1990s, Canadian Tire began replacing its older stores with bigger, better-lit new stores designed to improve shopper traffic and satisfaction. In the first year, sales at these new stores are typically 70% higher compared to the old stores. These new stores also help Canadian Tire compete as big American retailers like Home Depot and Lowe’s expand their Canadian operations. Thanks to the success of this plan, sales grew from $5.4 billion in 2001 to $7.8 billion in 2005, or 9.6% compounded annually. Income rose at a compounded annual rate of 15.6%, from $2.23 a share (total $176.7 million) in 2001 to $3.98…

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