TORONTO, April 2, 2020 /CNW/ - As the COVID-19
pandemic evolves, Canadian Tire Corporation (TSX:CTC, TSX:CTC.a)
(CTC) continues to meet the heightened needs of Canadians and
communities across the nation.
As 'Canada's Store', Canadian
Tire Retail stores remain open, where permitted, to provide the
essential products Canadians need during the current COVID-19
crisis. The safety of our customers and employees is our top
priority and we have introduced several measures to reduce the
spread of the virus in our stores. Stores have reduced their hours
and are continuing to take precautions with enhanced cleaning
protocols. To enforce physical distancing, we have installed
plexiglass and floor decals and are working to limit the number of
customers allowed in-store at any given time.
We continue to experience significant increases in Canadian
Tire's eCommerce business across many categories. Last week, with
the introduction of Curbside Pick Up, customers were offered
another way to same-day shop while maintaining their physical
distance. Demand for the new service has been strong during the
first week of operation.
We previously announced that our Mark's/L'Équipeur,
SportChek, Party City, Pro Hockey Life, National Sports, and
PartSource stores have been temporarily closed to the
public. While they will remain closed until further notice, we
are continuing to see significant eCommerce demand, particularly at
SportChek and Mark's as Canadians purchase health and fitness
products and healthcare and industrial apparel. We are fully
committed to helping our employees during this difficult time
through financial support for our frontline teams, including a
special support payment for our corporate store, distribution and
call centre employees.
Canadian Tire is also taking aggressive action to preserve its
cash position and financial flexibility, including:
- Implementing a plan to reduce operating costs at our head
office and corporate stores, and to reduce working capital across
the enterprise
- Deferring some of our 2020 planned capital expenditures, in all
categories of projects
- Pausing the repurchase of shares
- Leveraging our well-established and solid relationships with
Canadian banks and our high standing in capital markets to secure
additional sources of liquidity should they be required. This is in
addition to the existing funding channels available to CTC and its
related entities, which are:
-
- $1.975B committed bank lines for
general corporate purposes at CTC
- $2B Note Purchase Facility, and
$250M revolver at Canadian Tire
Bank
- $300M committed bank lines at CT
REIT
- 350M Norwegian Krone ("NOK")
secured revolving committed credit facility for Helly Hansen
"We have long-established ourselves as a resilient organization
and we are well-positioned to manage through these unprecedented
times. Our multi-category assortment, healthy balance sheet,
Triangle Rewards program, credit card value proposition, access to
multiple sources of liquidity for all our businesses, and
ultimately, the essential role we play in communities across
Canada, will serve us well as the
country emerges from this current crisis," said Greg Hicks, President and CEO, Canadian Tire
Corporation.
FORWARD-LOOKING INFORMATION
Certain statements made in
this press release may constitute forward-looking information under
applicable securities laws, including statements concerning store
operations and closures, our measures to reduce the spread of the
virus, the effect of the pandemic on the demand for products and
consumer purchasing behaviours, financial support for employees,
the planned reduction of operating costs and working capital
requirements, deferring capital expenditures, pausing the
repurchase of shares, access to existing funding channels and
securing additional sources of liquidity. Although CTC believes
that the forward-looking information in this press release is based
on information, assumptions and beliefs which are current,
reasonable and complete, this information is necessarily subject to
a number of factors, risks and uncertainties that could cause
actual results to differ materially from management's expectations
and plans as set forth in such forward-looking information.
Risks and uncertainties related to the effects of COVID-19
include the length and severity of the pandemic and its effects on
consumer demand and purchasing behaviours, supply chains, our
ability to operate stores, and credit and capital markets,
including access to capital. For more information on other risks,
uncertainties and assumptions that could cause CTC's actual results
to differ from current expectations, refer to section 2.8 (Risk
Factors) of our Annual Information Form for fiscal 2019 and to
section 10 (Key Risks and Risk Management) and all subsections
thereunder of our Management's Discussion and Analysis for the year
ended December 28, 2019, as well as
CTC's other public filings, available at www.sedar.com and at
www.corp.canadiantire.ca.
CTC does not undertake to update any forward-looking
information, whether written or oral, that may be made from time to
time by it or on its behalf, to reflect new information, future
events or otherwise, except as is required by applicable securities
laws.
ABOUT CANADIAN TIRE CORPORATION
Canadian Tire
Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or "CTC", is a family
of businesses that includes a Retail segment, a Financial Services
division and CT REIT. Our retail business is led by Canadian Tire,
which was founded in 1922 and provides Canadians with products for
life in Canada across its Living,
Playing, Fixing, Automotive and Seasonal & Gardening divisions.
PartSource and Gas+ are key parts of the Canadian Tire network. The
Retail segment also includes Mark's, a leading source for casual
and industrial wear; Pro Hockey Life, a hockey specialty store
catering to elite players; SportChek, Hockey Experts, Sports
Experts, National Sports, Intersport and Atmosphere, which offer
the best active wear brands; and Party City Canada, a leading,
one-stop shopping destination for party supplies and seasonal
celebrations. The more than 1,740 retail and gasoline outlets are
supported and strengthened by CTC's Financial Services
division and the tens of thousands of people employed across
Canada and around the world by CTC
and its local dealers, franchisees and petroleum retailers. In
addition, CTC owns and operates Helly Hansen, a leading global
brand in sportswear and workwear based in Oslo, Norway. For more information, visit
Corp.CanadianTire.ca.
FOR MORE INFORMATION
Media: Jane
Shaw, (416) 480-8581, jane.shaw@cantire.com
Investors: Lisa Greatrix,
(416) 480-8725, lisa.greatrix@cantire.com
SOURCE CANADIAN TIRE CORPORATION, LIMITED