After about three years of disturbing milk and
frozen pizzas along with automotive parts and sporting goods. Canadian Tire is
stepping away from it experimenting with the food industry. They are stopping
on expanding into groceries; the retailer has decided to stop pilot food
sections in its new prototype stores. Instead the company has chosen to focus
on its original goal to manufacture goods such as its signature tires and other
auto parts.
The company’s failure to embrace food shows the challenges of
non-grocers in coming to this category. It also reflects how retailers are
putting their core strengths aside when the U.S discount retailer Target is
coming to Canada in early 2013. In 2008, Canadian Tire was in the food industry
for its chances to bring in more customer traffic. But stocking food required
Canadian Tire to set up major costly distribution networks and refrigeration
for the goods. This would keep customers away from its key products such as
automotive goods.
No comments:
Post a Comment