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Canadian Tire grows Triangle Rewards with repurchase of Financial Services business stake from Scotiabank

Engaged Triangle Rewards members spend, on average, more than twice as much as non-members.
Canadian Tire Red Triangle Logo

Canadian Tire Corporation announced that it has completed the repurchase of Scotiabank's 20% stake in Canadian Tire Financial Services (CTFS).

This all-cash transaction, valued at $895 million, restores Canadian Tire's full ownership of its financial services arm. The transaction will enhance Canadian Tire's flexibility in delivering added value to its more than 11 million active loyalty members, including its 2.3 million credit card holders.

CTFS plays an important role in the Canadian Tire's Triangle Rewards loyalty program, representing approximately 75% of all Canadian Tire Money ("eCTM") issued to members annually.

Triangle Rewards is a cornerstone of CTC's Better Connected strategy, driving significantly higher sales per member and sustained growth over time. Engaged Triangle Rewards members spend, on average, more than twice as much as non-members, and those with a Triangle credit card represent some of CTC's most valued and engaged customers.

“This move enables us to expedite key elements of our Triangle Rewards strategy to stay relevant to customers' changing needs and expand our credit card program to unlock even greater value for shareholders,” says Greg Hicks, president and CEO. “Loyalty rewards programs, and their integration with financial institutions have evolved significantly since our original deal with Scotiabank.  We have invested heavily in Triangle Rewards, and Scotiabank has done the same with its coalition loyalty program. While we have appreciated partnering with Scotiabank over the past decade, with both Scotiabank and CTC having received significant strategic and financial benefits, concluding this partnership will give us much greater control and flexibility in building out our loyalty program. Accelerating issuance of eCTM, including through opportunities with new partners such as Petro-Canada, is key to driving value for members in a rapidly evolving loyalty marketplace.”

Since 2014, the number of Triangle credit cardholders has increased from 1.8 million to 2.3 million and receivables have grown by more than 60% to approximately $7.1 billion at the end of Q2 2023. In 2022, the financial services business ranked as Canada's seventh largest issuer of credit cards by receivables outstanding, generating $442 million of income before income taxes.

Scotiabank will continue to provide a committed credit facility of $1.1 billion to CTFS for the next 18 months.

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