Comparable sales at the company’s Mark’s chain grew by 4.8 per cent, and were up by 3.7 per cent at Sport Chek on higher sales of athletic and casual clothing. While purchases of essential items such as pet food and automotive products remained relatively strong in the first quarter, Canadian Tire reported on Thursday that its earnings were affected by changing consumer behaviours, as well as an unusually warm winter and a slow start to spring that contributed to weakened demand for seasonal products.Ĭanadian Tire to rebrand gas stations in new Petro-Canada partnershipĬanadian Tire commits half its sponsorship dollars to women’s professional sportsĬanadian Tire reported its overall revenue declined by 3.4 per cent in the 13 weeks ended April 1, to $3.7-billion.Ĭomparable sales – an important metric that tracks sales growth not tied to new store openings – fell by 4.8 per cent at Canadian Tire stores. Flood said that promotional intensity is likely to heat up, particularly in discretionary categories. Inventory levels in spring and summer products are elevated across the retail industry, TJ Flood, president of Canadian Tire Retail, told analysts on Thursday’s call. Canadian Tire recently exited a dedicated ocean freight contract at a one-time $13.5-million cost, as the company expects to lock in more favourable ocean freight costs in the near future. Food is making up a larger percentage of household budgets and American consumers are directing their disposable income “away from goods to services,” UPS chief executive Carol Tomé told analysts on a call in April to discuss the company’s earnings.Īcross the shipping industry, freight rates have fallen and demand for shipping hard goods has dropped sharply in recent months, as inventories climb. UPS-N reported that it saw buying behaviours change, with discretionary purchases softening as overall U.S. WHR-N reported a revenue decline as shifting consumer sentiment led to fewer big-ticket appliance purchases.Īnd United Parcel Service Inc. Other companies have noted similar trends. Hicks said on the call, adding that shoppers are “mindful” of their spending as they renew mortgages at higher interest rates, and also return to spending money in areas that declined during the pandemic, such as travel and restaurant dining. “The current high inflation rates have led customers to prioritize essential products over higher-ticket discretionary ones,” Mr. And data from Canadian Tire’s loyalty program showed spending declining at stores across all income groups. The company’s credit card data revealed that overall consumer spending has slowed for the first time since 2020, chief executive officer Greg Hicks told analysts on a conference call to discuss first-quarter financial results.
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