One of the biggest retailers in Burnaby is fighting off woes about its supply chain woes and beating expectations.
Canadian Tire Corp. Ltd. operates multiple stores in Burnaby, including a Marks at Market Crossing, two SportCheks (at Lougheed Town Centre and Metropolis at Metrotown), and a South Burnaby Canadian Tire location.
Sales of Christmas, automotive and hockey products bumped up the company’s fourth-quarter profit and revenue and capped a record year for the nearly 100-year-old retailer.
Canadian Tire store sales rose 3.4 per cent and comparable sales gained 9.8 per cent, while sales at SportChek added 5.8 per cent and comparable sales gained 15.9 per cent. Sales at Mark's rose 9.6 per cent as comparable sales rose 15.0 per cent.
"We successfully anticipated the wants and needs of our customers who were facing another Christmas spent at home while also considering the needs of those getting back on the road and back to the rink," president and CEO Greg Hicks said in a conference call on Thursday.
The company topped expectations as it reported a net income attributable to shareholders of $508.5 million or $8.34 per diluted share for the quarter, up from $488.8 million or $7.97 per diluted share a year earlier. Revenue for the 13-week period ended Jan. 1 totalled $5.14 billion, up from $4.87 billion in the 14-week period ended Jan. 2, 2021.
One way it’s succeeding is through a strong inventory strategy. The company is currently ordering spring and summer products early and chartering its own cargo ships to import goods as it doubles down on a strategy that's buoyed the retailer through the pandemic.
The company's approach has helped it work around bottlenecks at ports and avoid surging spot market shipping rates, keeping store shelves stocked amid shortages elsewhere.
"We've once again chartered a dedicated ocean vessel and we've contracted it for the entire year," Hicks said. "It gives us greater control over the supply chain and limits shipping peaks, which would otherwise expose us to spot market freight rates."
The company has also contracted an additional three charter sailings in its current quarter, he said.
- With additional reporting by the Canadian Press
