Shoppers ‘resilient but discerning’ as budgets still strained: Canadian Tire CEO

Bruce Winder, president of Bruce Winder Retail, joins BNN Bloomberg to discuss Canadian Tire's Q1 earnings report.

TORONTO — The head of Canadian Tire Corp. Ltd. says shoppers are proving to be “resilient but discerning” while their wallets get hammered by higher gas prices and other mounting costs.

“They have their chin up and their eyes wide open,” Greg Hicks told analysts on a Thursday earnings call. “Even as budgets get strained, customers are still shopping, but they are more selective and more value driven.”

The insights from Hicks offer a window into how the blocked Strait of Hormuz, which has driven up fuel and shipping costs, the ongoing tariff war and the country’s rising unemployment rate are shaping consumer behaviour.

How shoppers fare is likely to weigh heavily on retailers like Canadian Tire, which sell some products consumers may see as discretionary and eschew buying, if their budgets get harder to manage.

Canadian Tire, which also owns SportChek, Mark’s and Party City, is always watching for these potential shifts in consumer sentiment, but especially now that gas prices have spiked.

The Toronto-based retailer uses data from its Triangle Rewards loyalty program to monitor for changes across five segments of its customer base ranging from “affluent” to “thrifty.”

Across each of the segments, Hicks said spending is “great.”

But there are signs of “softness,” when the company looks at its customers not participating in the loyalty program.

“We’re seeing trips up, we’re seeing baskets steady, a little bit of softness in units per basket,” he said. “So I think there’s a more, kind of, determined and destination shop that’s happening.”

‘Patiently awaiting’ warm weather

Canadian Tire has been trying to respond with price tweaks that signal to customers they can count on the brand for value.

During its first quarter, when customers traditionally prioritize essentials over discretionary spending, Hicks said the company lowered thousands of prices.

Headed into spring, it’s sticking with the strategy and putting a particular emphasis on items below $50, which he said represent more than half of the company’s products.

His comments came as Canadian Tire reported a first-quarter net income of $129.5 million or $2.02 per diluted share, up from $56.9 million or 67 cents per diluted share a year earlier.

On a normalized basis, it earned $2.02 per diluted share for the quarter ended April 4, up from a normalized profit of $2.00 per diluted share in the first quarter of 2025.

Revenue for the quarter totalled $3.57 billion, up from $3.46 billion a year earlier.

But comparable sales took a hit. They were down one per cent as growth at SportChek and Mark’s was offset by a decline at Canadian Tire.

Canadian Tire comparable sales fell 2.3 per cent, while SportChek comparable sales rose 3.3 per cent. Mark’s comparable sales added 1.2 per cent.

While Hicks said the first quarter is usually Canadian Tire’s smallest, this time around it was particularly impacted by weather.

“Unfortunately, the seemingly endless Q1 winter clearly delayed the warmer weather and the inevitable sales it brings,” he said.

If Mother Nature had stuck to her usual cadence, Hicks said the company would have fared better when its results are compared with last year.

“Like our customers, we have been patiently awaiting the spring and in B.C., where we have seen better weather, we’ve seen much better sales,” he said.

While spring is off to a slow start, Hicks was optimistic about sales because people have started changing their tires and the World Cup is nearing.

A handful of games are being held in Toronto and Vancouver as part of the global soccer tournament.

“We’re ready for World Cup,” Canadian Tire’s chief operating officer TJ Flood said on the same call as Hicks.

“We’ve invested really, really robustly in fan wear and the early sales results have been very strong, so we’re excited about that as well.”

This report by The Canadian Press was first published May 14, 2026.

By Tara Deschamps