Rewards plan widens appeal

Article Excerpt

CANADIAN TIRE CORP. $170 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 63.1 million; Market cap: $10.7 billion; Price-to-sales ratio: 0.9; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.canadiantire.ca) owns 501 Canadian Tire stores across Canada. They sell automotive, household and sporting goods. Other operations include 298 gas stations, 90 PartSource auto-parts stores, 386 Mark’s casual clothing stores, and 427 stores that sell sporting goods under the Sport Chek and Sports Experts banners. In 1958, the company launched its famous Canadian Tire money reward program. Under that plan, shoppers who paid with cash received coupons, which resembled currency. They could then save up those bills to pay for future purchases. Canadian Tire continues to hand out its paper coupons, but more of its customers now collect their rewards electronically, particularly with Canadian Tire-branded MasterCards. The company has now launched a new rewards program called “Triangle.” Under the plan, customers can accumulate and spend their points at most of the company’s retail chains and gas…