Canadian Tire Corporation completes strategic review of its financial services business
Canadian Tire Corporation has completed the assessment of strategic alternatives for Canadian Tire Financial Services (CTFS) and announced that it will retain full ownership of the CTFS.
Canadian Tire explored options with a range of interested parties, including several of Canada's leading financial services companies, and has chosen a path which builds upon the CTFS's strong return profile and meaningful earnings stream, and maximizes its contribution to Canadian Tire’s retail portfolio.
As Canadian Tire scales the Triangle Rewards loyalty program, CTFS will continue to add value through its relationship with Triangle credit card holders and its lens on the Canadian consumer.
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"The review underscored that Canadian Tire is uniquely positioned to maximize the Bank's long-term financial and strategic potential," said Greg Hicks, president and CEO, Canadian Tire Corporation. "Having reviewed the alternatives, we have gained insights that will make us an even better bank owner, with confidence that this is the optimal path for shareholder value creation, including through a scaled loyalty program.
"Retaining the Bank cements our flexibility to drive value to our retail businesses and pursue partnerships that will make Triangle Rewards membership more rewarding every day, in our stores and beyond. We are actively engaged in conversations with several of Canada's largest brands about loyalty partnerships that are expected to broaden the value of Triangle Rewards – giving more Canadians more reasons to shop with us."
Canadian Tire is expanding its retail ecosystem around Triangle Rewards, powered by its store banners and bank, as well as strategic loyalty partners like Petro-Canada.
