Canadian Tire retools focus

Canadian Tire Corp. says its main focus over the next three to five years will be on growing its core retail operations.

Under a strategic plan announced Wednesday, the company acknowledges that returns from its financial services business have been below expectations.

But while Canadian Tire is intent on getting financial services such as credit cards up to the target level, its main focus will be on merchandise.

Chief executive officer Stephen Wetmore says Canadian Tire has an advantage over competitors because of its well-known brand and unique assortment of goods.

The company sells everything from auto parts and gasoline to sporting goods and housewares, as well as clothing through Mark's Work Wearhouse.

With nearly 480 stores, Canadian Tire expects to put increased resources on fast-growing merchandise categories, such as backyard and exercise equipment.

Canadian Tire executives outlined the plan Wednesday ahead of a presentation for investors, analysts and the media.

A day earlier, Canadian Tire announced a deal to build and operate gas stations and convenience stores at 23 service centres along  Ontario's two busiest highways.

Michael Medline, president of Canadian Tire Automotive, said the company hopes to attract new customers to its stores through the fuel stations.

"For us, this was a once-in-a-generation opportunity to put our brand on the most modern gas bars available on the busiest highways in the country," Medline said in an interview.

"We're going to be able to expose our brand and Canadian Tire petroleum to current customers and new customers travelling along the highways."

He added the company will give away Canadian Tire money at its gas bars in the hopes of getting people to shop at its retail outlets.

Canadian Tire employs more than 58,000 people at 273 gas stations and 479 retail stores across the country.