I would say Canadian Tire definitely has a moat. The company has a slick marketing department which leverages social media (Facebook), loyalty programs (CT money instantly redeemable at checkout), no-fuss return policy (90-day with receipt/all packaging), and sponsorship programs (example: Winter Olympics) to build and retain their customer base. Their supply chain management is second to none for a Canadian retailer. In fact, when I was knocking on their purchasing department door as a small manufacturer in the late 80's, I was impressed at how innovative they were even back then. They were always seeking out the latest products with special features not commonly found elsewhere. Just look through their hand tool selection and you will find many items which are unique - like an adjustable C-clamp with quick click-stop adjustments as well as the standard screw, on sale for less than a regular C-clamp.treva84 wrote: ↑Nov 9th, 2017 12:12 pmThinking about CTC.A but honestly I see it as a no moat retailer. The earnings report today was very solid. I must say I'm surprised that it's doing so well when retailers in the US are under pressure from Amazon. Can someone please educate me as to what makes CTC.A special?
Canadian Tire has always been a "go to" place for me, especially when I had two rental houses prior to 2012 and was regularly doing emergency repairs. No other Canadian retailer even comes close to stocking the diverse lines of products which enable "one-stop" shopping for busy people. There I can find "run-of-the-mill" kitchen appliances, paint, tools, furniture, electrical hardware, plumbing accessories, kid's toys, sporting goods, gardening tools, house plants, and auto accessories all in one store. For top quality stuff I will always shop elsewhere, but for items that need regular replacement (like kid's bikes, sports equipment, or kitchen cookware), Canadian Tire offers the most variety and often at lower cost. When bought on sale or on special clearance, prices are virtually unbeatable. Where else can you find a brand new American Standard two-piece toilet retailing for $200 for just $40 (yeah, I had to buy pieces at separate stores) or a heavy-duty wooden computer desk with sliding drawers for $94? That's why, I suppose, others similar needs shop there. Larger stores always seem busy.
Having said all the above, I still don't own shares . Waiting for the next big drop, but their positive earnings always get in the way.