A Canadian icon is making changes in an attempt to adapt to new market conditions, and position itself for greater stability in the future.
Canadian Tire Corp. is revamping its executive suite to promote growth. CEO Stephen Wetmore is dishing out more responsibilities to some of his senior executives, hoping they can improve the company’s efficiency.
The changes will affect the retailer’s third quarter earnings report, with a $15 million pre-tax charge reflecting the cost of the cutting some senior managers and employees.
Wetmore said less than 1% of Canadian Tire’s workforce of more than 58,000 was being cut.
Streamlining of services is a key part of the new strategy as the retailer merges its five different units — Canadian Tire retail, Mark’s Work Wearhouse, financial services, petroleum and auto parts specialty stores — into one superbrand.
“Today’s changes are critical to the evolution of Canadian Tire as a customer-centred, performance-driven company,” Wetmore said in a statement.
“We have to deliver faster execution of our growth strategy. We have to improve the customer experience. We have to recognize that our customers look to us to provide all the solutions for the jobs and joys of family life — and that means we have to start approaching them as one company, instead of five inter-related businesses. In doing so, we will deliver the top-line growth we are capable of, build a world-class customer experience and take unnecessary costs out of our business.”
Mike Arnett and Glenn Butt, who have led the main retailing and automotive operations respectively, have been promoted and given additional duties.
Arnett remains president of Canadian Tire Retail and will get added responsibility for company-wide strategic marketing. He will also oversee efforts to improve the efficiency of the retailer’s purchasing department.
Butt becomes executive vice-president of the parent corporation, responsible for in-store customer experience and store operations at Canadian Tire.
Pat Sinnott, Canadian Tire’s executive vice-president for supply chain, has been assigned to improve the effectiveness of core processes throughout the organization.
Paul Wilson, who has been president of the Mark’s clothing division, and Dean McCann who has been president of Canadian Tire Financial Services, will continue in those capacities.
The company also said it has made substantial progress in the centralization of its shared service functions — Finance, Human Resources, IT, Legal, Communications & Corporate Affairs, and Corporate Strategy and Real Estate — to reduce duplication of work and remove costs from the organization.
Wetmore said he’s pleased with the company’s performance in a challenging economy, but noted the changes announced Wednesday reflect that more work needs to be done.
