Canadian Tire Inc. told analysts on Thursday that its customers remain preoccupied with stretching every dollar as trade‑related tariffs and higher fuel costs linger. The company credited a new artificial‑intelligence pricing tool and an expanding loyalty scheme for a modest 0.7 % rise in total sales for the quarter ending 4 July 2026.
AI pricing drives value proposition
Chief executive Greg Hicks said the firm used its DaiVID AI platform to cut prices on more than 5,000 items, focusing on essentials such as cleaning supplies and storage solutions. "We kept our value proposition sharp using our DaiVID AI analysis to drop prices on thousands of products, and we saw strong customer response," he told investors.
Chief operating officer TJ Flood added that the system guides price adjustments based on elasticity curves and competitive activity, but the company does not employ the tool for real‑time dynamic pricing. A corporate statement confirmed that DaiVID is a longer‑term pricing aid, with any changes reviewed and scheduled through established processes.
The AI‑driven approach coincided with an eight‑percent comparable‑sales lift at Sport Chek, which Hicks linked to inventory moves ahead of major sporting events. Chief financial officer Darren Myers noted that roughly half of that growth stemmed from World Cup merchandise, while sales of Montreal Canadiens fan gear also contributed.
Loyalty programme fuels sales
Canadian Tire's Triangle Rewards programme now counts more than 12 million members, with about two million active participants who earn points through partners such as Petro‑Canada, RBC and WestJet. Purchases by members outpaced non‑members, lifting loyalty‑related sales 3.1 % year‑over‑year.
Hicks highlighted the exclusive Electronic Canadian Tire Money (ECTM) as a key driver, saying that higher issuance leads to more redemptions, additional sales and richer first‑party data. "Partnerships are a net‑new lever relative to last year, and this value focus lets us give differentiated value to a value‑focused consumer," he explained.
Analysts see the strategy as a response to a broader shift among Canadian retailers. Discount chains such as Dollarama and Walmart have reported stronger sales, while Metro announced plans to convert ten stores to its Food Basics discount banner to capture price‑sensitive shoppers.
For Canadian consumers, the combination of AI‑guided price cuts and a robust rewards network offers a way to mitigate the impact of lingering trade tensions and elevated living costs. For the retailer, the approach provides a template for balancing short‑term price competition with longer‑term data‑driven customer engagement.
Based on reporting by Global News.