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Posted Jan 15, 2008, 12:07 AM
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National Capital Region
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Join Date: Nov 2005
Location: Eastern Ontario
Posts: 9,244
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Quote:
Canadian Tire closes last of its small stores
Westboro outlet no longer fits strategy, but workers keep jobs
Tim ShufeltThe Ottawa Citizen
Friday, January 11, 2008
Canadian Tire quietly closed its store on Richmond Road at Island Park Drive on Wednesday night, shutting down the last of the chain's traditional, small-scale stores in the Ottawa area.
The small, white building, constructed in 1952, no longer fits in with the retailer's evolved corporate strategy, said Shaun Telfer, regional manager of dealer relations.
"The small stores have some lasting romance, but there's just not enough space at the end of the day. They run out of room and we're trying to sell things like patio sets and barbecues," Mr. Telfer said.
Staff was busy winding down the operation at the store yesterday, taking inventory and getting things ready to move to Canadian Tire's new big-box store on Carling Avenue near the Queensway, which is set to open in late
March.
At that time, another Carling Avenue outlet, just east of Woodroffe Avenue, will also be closed and folded into the new superstore.
All affected employees have been guaranteed jobs, said spokeswoman Lisa Gibson. All but two from the Richmond Road store in Westboro took the company up on the offer, she said.
The store's owner, Marcel Jakubow, however, was not offered ownership of the new franchise, but will instead head up a store in Antigonish, N.S. Mr. Jakubow said he did not have time to answer questions yesterday.
Outside the store, surprised pedestrians read the signs announcing the closing and peered through the windows of the neighbourhood mainstay.
"I've been coming here for 40 years, since I was a little kid," Rick Brown said. "I bought my first BB gun, my first hatchet here. I used to cut school to come look at stuff on the shelves."
He said he understands that retailers need to change their tack to compete with the likes of Home Depot and Wal-Mart. "But this is a local place," Mr. Brown said, adding the store was always busy.
He said Canadian Tire's departure is a big loss to Westboro, with a large contingent of seniors and retirees who rely on the store.
That's true, said Ian Lee, director of Carleton University's MBA program.
But the neighbourhood would be better served by a retailer like Home Hardware, whose higher-price, lower-volume strategy works well in smaller stores in downtown neighbourhoods, he said.
"I know these people. I'm one of them," Mr. Lee said. "We aren't going out and buying all kinds of power tools. We just need the occasional shovel and the occasional can of paint. And that's not Canadian Tire's market anymore."
Its market now is primarily new homeowners with young families, who are willing to sacrifice an intimate, traditional shopping experience for more selection and lower prices, Mr. Lee said.
And that strategy works best in the suburbs where there is more space and real estate is relatively cheap.
Canadian Tire's strategy changed after Wal-Mart crossed the border into the Canadian market in the mid-1990s. To keep prices competitive, the company began to reinvest in its infrastructure to allow for much larger stores in fewer locations, Mr. Lee said.
That strategy has served Canadian Tire well in fending off the big-box onslaught, he said.
While the company is well into the process of reinvention, Ms. Gibson said there are still some older, smaller stores scattered across the country that, like the one in Westboro, are due for a re-evaluation.
"We're still looking at opportunities," she said.
© The Ottawa Citizen 2008
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if anyone has recent pics of the new 'urban' Canadian Tire at Carling and Clyde, I'd love to see them 
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