Canadian Tire Corporation Announces Executive Changes
22 Feb, 2012, 18:51 ET
TORONTO, Feb. 22, 2012 /CNW/ - Canadian Tire Corporation, Limited (the "Company") (TSX: CTC, CTC.a) today announced management and organization changes to heighten focus on the execution of the Company's strategic plan to grow the core Canadian Tire Retail (CTR) division, ensure strong and growing business units, drive performance and productivity, and develop new platforms for growth.
"Canadian Tire posted excellent results in 2011 and we have entered 2012 on a very strong footing. I believe we have the right strategy and we are making the right investments, our priority must now be exceptional execution in concert with our Canadian Tire Dealers," said Stephen Wetmore, President and CEO, Canadian Tire Corporation (CTC). "It's all about people. This announcement continues our plan to select our best leadership talent, and ask them to take on new challenges in order to keep us on offense in this competitive retail environment."
Driving 'Core' Growth in Canadian Tire Retail
"I am very pleased to announce the appointment of Marco Marrone to the critical role of Chief Operating Officer for our core retail business, Canadian Tire Retail. Marco has repeatedly demonstrated his ability to execute against our objectives and deliver results," continued Mr. Wetmore.
CTR is well known for its authority in the living, fixing, playing and automotive categories. Over the past two years, the Company had separated its operations within CTR to provide focus to critical areas of the business. In order to grow the core business, drive speed and efficiency of execution and build on the successes achieved, the various areas of CTR will now report directly to the Chief Operating Officer. Mr. Marrone will have oversight of all of CTR's operations, including merchandising, marketing, supply chain, and store operations including Dealer relations.
Following several years as President and the head of operations at Canadian Tire Financial Services, Mr. Marrone joined CTC in 2009 as Executive Vice President and Chief Financial Officer. In addition to gaining an in depth knowledge of the Company's retail operating environment, Mr. Marrone has completed major projects such as the two-year project to adopt International Financial Reporting Standards at CTC and has taken executive responsibility for CTR's recently launched loyalty trial and the Company's digital strategy. He now leads a seasoned team within Canadian Tire Retail and over the coming months will look to further strengthen the Company's merchandising leadership.
Developing New Platforms for Growth
Mike Arnett becomes Executive Vice President, Corporate Development.
"Mike has done an exceptional job in driving growth in Canadian Tire Retail over the past five years. As part of the Mark's acquisition team and given his most recent role as President of CTR, Mike is perfectly positioned to accelerate our enterprise-wide efforts in new business development," said Mr. Wetmore.
Developing new platforms for growth is a critical component of the Company's strategy. The successful acquisition of the former Forzani Group in 2011 is an example of establishing a growth platform as the ultimate authority for sport in Canada. Mr. Arnett will also assist with the oversight of global sourcing activities for the enterprise and with the execution of Mark's strategic plan.
Driving Performance and Productivity
Dean McCann has been appointed as the Company's Chief Financial Officer and Executive Vice President, Finance, replacing Marco Marrone. Mr. McCann will be responsible for the financial and investor relations functions of the Corporation and will guide the Company's efforts to achieve its stated financial aspirations of top line growth, total return to shareholders, return on invested capital, and return on receivables.
In his most recent role as President of Canadian Tire Financial Services and Canadian Tire Bank, Mr. McCann led strong, profitable growth in the business unit through a period of significant global economic uncertainty. Mr. McCann is a Chartered Accountant and has held successive financial roles with the Company, including Corporate Comptroller for CTC and Chief Financial Officer of CTFS and Canadian Tire Bank.
Strong and Growing Business Units
Mary Turner takes on the roles of Chief Operating Officer of Canadian Tire Financial Services (Financial Services) and President of Canadian Tire Bank, replacing Dean McCann. Ms Turner will build on the success achieved at Financial Services by continuing to pursue growth opportunities and closely managing operational costs and credit risk.
Financial Services is playing an increasingly important role in providing services to CTC business units, including in-store financing programs and the recent launch of a "home services" business. Financial Services will continue to pursue initiatives to support the growth of the core retail business.
A 20-year veteran of Canadian Tire and former Chief Operating Officer of Canadian Tire Bank, Ms. Turner has held positions of increasing responsibility in finance, customer service, credit risk management, and call centre operations.
Harry Taylor has been appointed Chief Operating Officer at Mark's, replacing Paul Wilson who has decided to leave the Company.
"I fully understand Paul's desire to pursue other career interests. I would like to express my sincere appreciation to him for building Mark's into one of Canada's largest apparel retailers," said Mr. Wetmore. "We hired Harry Taylor with the intent of putting him into an operating role and I believe the challenges and opportunities at Mark's represent a perfect fit for Harry".
Mr. Taylor is an experienced business executive with a proven operational track record in retail and consumer goods, having served as Senior Vice President, Operations with Home Depot Canada; Vice-President, Customer Strategy, PepsiCo Inc.; as well as in senior positions with Frito Lay and McKinsey & Company. More recently as part of Holt Renfrew's senior executive team, Mr. Taylor had responsibility for information technology, real estate, store planning, construction, finance and treasury. Mr. Taylor joined Canadian Tire Corporation in 2010 to lead the Performance Management group for the family of CTC companies.
The appointments are effective March 5, 2012.
This document contains forward-looking information that reflects management's current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our financial position, results of operation and operating environment. Readers are cautioned that such information may not be appropriate for other circumstances.
All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to, statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Often but not always, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made.
By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information and assumptions which are current, reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of the factors - many of which are beyond our control and the effects of which can be difficult to predict - include (a) credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates; (b) the ability of Canadian Tire to attract and retain quality employees, Dealers, Canadian Tire Petroleum agents and PartSource, Mark's Work Wearhouse and FGL Sports store operators and franchisees, as well as our financial arrangements with such parties; (c) the growth of certain business categories and market segments and the willingness of customers to shop at our stores or acquire our financial products and services; (d) our margins and sales and those of our competitors; (e) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, competition, seasonality, commodity price and business disruption, our relationships with suppliers and manufacturers, changes to existing accounting pronouncements, the risk of damage to the reputation of brands promoted by Canadian Tire and the cost of store network expansion and retrofits and (f) our capital structure, funding strategy, cost management programs and share price. We caution that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect our results. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information.
For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the "Risk Factors" section of our Annual Information Form for fiscal 2010 and our 2010 Management's Discussion and Analysis, as well as Canadian Tire's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.
Statements that include forward-looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on the Company's business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.
The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities laws.
ABOUT CANADIAN TIRE
Canadian Tire Corporation, Limited (TSX: CTC, CTC.a) is one of Canada's most-shopped general retailers and the country's largest sporting goods retailer, with more than 1,700 retail and gasoline outlets from coast-to-coast. Our primary retail business categories - Automotive, Living, Fixing, Playing, Sports and Apparel - are supported and strengthened by our Financial Services division, which offers such products and services as Canadian Tire Home Services, credit cards, retail deposits, in-store financing, product warranties, and insurance. Nearly 68,000 people are employed across the Canadian Tire enterprise, which was founded in 1922 and remains one of Canada's most recognized and trusted brands.
For further information:
Investors: Jonathon Borland, 416-480-8058, [email protected]
Melanie Falzon, 416-480-3974, [email protected]
Media: Liz Hamilton, 416-558-8121 (mobile), [email protected]
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