Chris R. said:
What evidence do you have that their urban stores aren't doing well? Their net income is up and their stock value is doing well enough.

Has there been reports of urban store closures or issues?
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Canadian Tire is not doing particularly well. Their Q2 reporting did have an increase in net income, but that was on the back of some cost reductions. Year-over-year revenue (which matters the most and is the cleanest measure of ongoing/future success) has been hurting for some time. The stock price is at the same level as it was six years ago.

They might not be in a rush to put in a new store, but they are probably not in any rush to close the existing one either. I doubt that shovels in the ground are happening anytime soon.
 
BCTed said:
Canadian Tire is not doing particularly well. Their Q2 reporting did have an increase in net income, but that was on the back of some cost reductions. Year-over-year revenue (which matters the most and is the cleanest measure of ongoing/future success) has been hurting for some time. The stock price is at the same level as it was six years ago.

They might not be in a rush to put in a new store, but they are probably not in any rush to close the existing one either. I doubt that shovels in the ground are happening anytime soon.
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I mean, in the world of ever increasing profits, that may not look so good, but overall, earning a profit and tightening costs seems like it's doing decent. I think it's an unhealthy corporate market to expect 10% increase in returns every year. It's unsustainable and leads to the eventual collapse of businesses. A steady flow of revenue, fluctuating year to year perhaps, while finding smart places to reduce overhead is smart business in my mind. Moving some stores to residential construction with stores at the base makes a ton more sense.

This development will have nearly 350 units without parking which means almost 500-550 people without direct access to a car. That's built-in customers and if they're rentals it's income for years to come. Not to mention a capital asset that can be borrowed against or sold if money is needed for future expansions or changes that would be off the table without that type of asset.

Diversifying is one of the big reasons I think CT is here to stay. It pays a 4.5% dividend, which I think could likely be lowered to invest further into the business, which would allow growth, but honestly I don't think CT is that interested in large-scale growth but rather with staying the course and perhaps making small purchases of smaller companies. Their REIT is also doing quite well and has pretty nice dividends.

Honestly I've been watching the CT REIT and been debating jumping ship from my current investments in REIT and focusing more on CT.
 
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Anecdotally I think CT's pricing model of "overpriced unless on sale, then 70% off for an actually reasonable price" hurts them with modern demographics. Everyone I know over the age of 50 loves CT but everyone I know younger doesn't share the same affinity, largely because they don't care for the "value hunt" as much. I know I would rather go to Home Depot and pay a more constant, fair price, even if CT can offer better pricing on sales.
 
Well and the quality of CT goods is usually terrible and been so for many years from I remember.
 
innsertnamehere said:
Anecdotally I think CT's pricing model of "overpriced unless on sale, then 70% off for an actually reasonable price" hurts them with modern demographics. Everyone I know over the age of 50 loves CT but everyone I know younger doesn't share the same affinity, largely because they don't care for the "value hunt" as much. I know I would rather go to Home Depot and pay a more constant, fair price, even if CT can offer better pricing on sales.
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I guess the overall point is that regardless of store brand, there are very few other places in or near downtown Hamilton where you can buy hardware and other household goods, so it is filling a need.
 
So I've heard hilariously that CT didn't mean for this to be public nor the closure of the store. The staff found out from the reporting in the DRP that the store will be closing in the future which isn't the best way to find out if course.
 
Chris R. said:
So I've heard hilariously that CT didn't mean for this to be public nor the closure of the store. The staff found out from the reporting in the DRP that the store will be closing in the future which isn't the best way to find out if course.
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How far into the future do you think the closure will be? My guess is a good number of years (3+) at the very least.
 
I got an amusingly strong pushback on the reddit thread by suggesting Hamilton should mandate ground floor retail for this and in the downtown core in general. Most people seem to think that because there is plenty of vacant retail in the downtown area we shouldn't add more but that just seems like poor planning to me for an area set to receive a lot of people in the next few decades.

I think toronto has a ground floor retail requirement in certain areas, so it isn't unheard of.
 
BrenWilson said:
I got an amusingly strong pushback on the reddit thread by suggesting Hamilton should mandate ground floor retail for this and in the downtown core in general. Most people seem to think that because there is plenty of vacant retail in the downtown area we shouldn't add more but that just seems like poor planning to me for an area set to receive a lot of people in the next few decades.

I think toronto has a ground floor retail requirement in certain areas, so it isn't unheard of.
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https://twitter.com/x/status/1833233104099807478
 
Exactly! Yeah the conditions currently are probably not great for physical retail in this area but that kind of narrow thinking is how you end up with poor urban fabric. In 20-30 years when Hamilton is into the 800k+ population mark and we actually have some form of rapid transit in the downtown area we'll look at all these crap dead podium designs and wonder why we did that.
 
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