canadian tire keeps full control of financial services business amid growth plans

In a significant move for its financial services division, Canadian Tire Corp. Ltd. has recently completed a review process to explore its strategic options. The company has determined to maintain 100 percent ownership of Canadian Tire Financial Services, following a comprehensive examination of alternatives which included conversations with several major financial service firms in Canada. This decision marks a pivotal moment for Canadian Tire's loyalty program, Triangle Rewards, as the retailer positions its financial services to enhance the overall value offered to Triangle credit card holders. As part of this strategy, Canadian Tire's CEO Greg Hicks conveyed that the review process has provided crucial insights that aim to improve their capability as a bank owner. The decision to consolidate ownership follows a prior transaction where the company repurchased the 20 percent stake in the financial services operations that had previously been held by Scotiabank. This transaction reflects Canadian Tire's commitment to its banking services as an essential component of its broader operational strategy. Moreover, the company is actively pursuing partnerships with some of Canada's leading brands to expand the value of the Triangle Rewards program. These anticipated collaborations are expected to further integrate financial services within the retailer's ecosystem, thus enriching customer experiences while driving loyalty amongst users. The focus on loyalty partnerships signals Canadian Tire's intent to leverage its financial services more effectively amidst a competitive retail landscape. This move is viewed as a part of Canadian Tire’s broader strategy to enhance its core offerings and strengthen its brand, especially as consumer loyalty programs become increasingly significant in retaining customers. By fully owning its financial services, Canadian Tire plans to integrate these services seamlessly with its retail offerings, thereby elevating the Triangle Rewards program and providing additional benefits to its clientele. The decision indicates a firm belief in the potential of in-house financial services to contribute meaningfully to the company’s growth trajectory.