Canadian Tire creates three business units - Brief Article

Home Channel News, Nov 6, 2000

Under new president, the hardlines retailer reorganizers into retail, financial services and new business development units

TORONTO -- Canadian Tire's new chief executive has not spoken with the press since his appointment two months ago. But Wayne Sales' approach to the company's future success is becoming apparent.

Canada's largest hardlines dealer last month announced the creation of three business units overseeing retail, financial services and new business development, as well as several new executive appointments.

Sales' management team is working to increase productivity and revitalize the company's stores, which are being challenged by big-box competition.

The new Canadian Tire Retail division is responsible for growth, development and operating performance of retail operations, including the company's 438-unit network of stores carrying hardlines, sporting goods, lawn and garden, consumer electronics, housewares and automotive parts. The new business unit is also in charge of Canadian Tire's e-marketplace, which is expected to launch later this year.

Mark Foote, former senior vp-marketing and chief information officer, was appointed president of the retail division. He will report directly to Sales, his predecessor in the position. Canadian Tire, in a prepared statement, identified Foote as being "a key strategist behind many of the corporation's major growth strategies" such as its new-format "Next Generation" stores. Pat Sinnott has been named the division's senior vp-supply chain.

Foote said that new business structure is not a significant change for the retailer.

"There really always has been a retail division," he said. "This just provides a clear point of accountability for the profitability of that division."

Canadian Tire Financial Services oversees development of growth strategies and operating performance, including creating and marketing products and services to leverage the company's brand. Tom Gauld continues as president of the division.

The new stand-alone New Business Development unit will focus on long-term growth. The division's president will be named after the completion of a full strategic review of all the business Canadian Tire is involved in, Foote said.

Other changes include the appointment of Huw Thomas as executive vp and chief financial officer for all three business units. Thomas had been vp-finance for both retail operations and financial services. Janice Wismer was appointed vp-human resources and will report directly to Sales.

The company also created the new senior position of vp-customer values, but it has yet to appoint someone to the job.

In a prepared statement, Sales said the new appointments are "important building blocks to make sure we execute our growth strategies effectively, continue to deliver a consistently strong customer experience and to focus on delivering shareholder value."

When he was named to replace Steve Bachand as Canadian Tire's CEO, most company observers expected Sales to maintain most of the programs Bachand had put in place.

Both men worked on the development of the chain's 50,000-sku, 53,000-square-foot store format to compete with big-box retailers. Canadian Tire has nearly completed its $1 billion make over -- expanding, upgrading and even relocating stores to make them more competitive.