Canadian Tire buys Pro Hockey Life

[JR Boucicaut 3760]

And people say it's bad in the US with all of the big stores...CTC also owns Forzani (SportChek/Hockey Experts/National Sports)

http://www.theglobeandmail.com/globe-investor/canadian-tire-buys-pro-hockey-chain-bolsters-sporting-goods-position/article5750624/

[AIREAYE 248]

Pass GO, collect $200.

[Davetronz 109]

That's pretty intense. I wonder if all of the stores will keep their "identity"?

The buying power behind that group has to be pretty significant.

[Chadd 916]

I would love to know what their percentage of the hockey market in Canada actually is.

[PMurphy17 25]

Shocked marz didn't start this thread... Mod Squad business news breaker might be the first time.

[AIREAYE 248]

Thinking aloud here:

It would be like a big company, say George Weston Ltd. (who owns, Loblaws, NoFrills, Zehrs, Real Canadian Superstores etc.), buying a growing differentiated supermarket (say, Asian supermarket T & T or hypothetically and more a more appropriate example in this context, Whole Foods) chain and re organizing their existing brands.

So drawing a parallel here, we could say CTC (owning Sportchek, National Sports, Hockey Experts etc.) buys another significant retailer (PHL) while in the process of reorganizing their brands.

It would be like Loblaws having a greater focus on a one-stop shopping experience for all price points/income levels. They would rebrand their produce section 'Fruit & Veggie Experts', their baked goods section 'Nevada Bob's Bread' and perhaps their meat section 'At-Meat-Sphere' while at the same time closing down some of their other stores/brands not fitting in with plans. With a new business unit in the fold, they could target a higher-end and more specific segment.

[IPv6Freely 2087]

Nice, I like it.

Now, as Canadian Tire gears up for heated competition in advance of U.S. discounter Target Corp coming to Canada, it is taking one more step to bolster its offerings in the sporting goods field.

[PMurphy17 25]

this purchase has nothing to do with Target. Completely misguided link in story based on overall Canadian Tire competition. Tire falls under Mass retailers with a much different assortment than Target(offers far more softgoods vs Tire being distinctly hard products driven). As it stands there were rumours that Target won't touch hockey in the beginning.

[oldtrainerguy28 478]

This is going to be an interesting purchase. It will be interesting to see what the changes are coming to PHL from the CT boys. Via purchasing and store operations. Prior to the take over if and when it passes all things needed Govt wise all PHL stores were really starting to rely on the Pro Sharp sharpening and Profiling. Interesting to see if that stays part grows.

I can not see Target getting into Hockey either they do not do any in the US. If it was Dick's coming up now then I woul be wondering but you can only spread that hockey dolar so thin..................

[AIREAYE 248]

If anything, I'm going to guess that prices could be relaxed a bit and sales more frequent due to greater group buying power.

[oldtrainerguy28 478]

If anything, I'm going to guess that prices could be relaxed a bit and sales more frequent due to greater group buying power.

Well there really couldnt be any better buying power then at present they already own most of the hockey market. I could not see that being affected in the least. If they pass on the saving they get then ot could help the average family play. Bu they are not going to discount high end any further. it would be interesting to see if Graf stays in PHL.

[hampshirepuck 2]

If anything, I'm going to guess that prices could be relaxed a bit and sales more frequent due to greater group buying power.

Yeah I mean, the prices at PHL aren't exactly cheap, I guess with the purchase by CTC, it might provide the same product and experience but at much lower prices

[Law Goalie 147]

Well there really couldnt be any better buying power then at present they already own most of the hockey market. I could not see that being affected in the least. If they pass on the saving they get then ot could help the average family play. Bu they are not going to discount high end any further. it would be interesting to see if Graf stays in PHL.

I would imagine the new CT hockey sub-sections will, so whether they roll PHL into that setup or just add their branding to PH stores that aren't near CT locations (hard to imagine that!) it should stay the same. The few CT stores I've seen that did have a strong emphasis on hockey (the Cataraqui store in Kingston is a great example) had their own relationships with Graf. Historically, CT left it up to individual store operators to decide where their focus is: some are more outdoor than indoor, some have more or less in the way of firearms, and a very few decided, seemingly due to lack of competition, to have good hockey sections. I suspect the only difference will be that now CT will require stores to rebrand their hockey sections (and other sporting areas) and 'strongly suggest' that they expand their offerings.

The only way I can really see this going badly for CT is if the franchisees fail to take it seriously. CT has a perhaps undeservedly terrible blanket reputation for high-end sporting good, and especially hockey; the fact is, they were pretty smart to get in front of the 'youth armour suit' concept, and they have at least shown the capacity to handle the high end well. Investments like this may help lift the blanket, but if the subsections don't live up to the same standards as the stores they're replacing/integrating, it's going to fall flat pretty fast. I would imagine they're going to have a fairly tough time convincing random CT franchisees to take this as seriously as they'll need to in order to be credible: not just investing in lots of expensive stock, but hiring people who actually know how to sharpen and fit, and have some idea what they're talking about. If they convince them to take it as seriously as, say, their Auto Parts/Repair section (which is generally at least OK), they should do OK; if it becomes more like their bike selection, which is what it historically has been, with a bunch of random teenagers avoiding the area and very sub-par stock, I foresee the rebirth of the LHS not long down the road...

[AIREAYE 248]

Well there really couldnt be any better buying power then at present they already own most of the hockey market. I could not see that being affected in the least. If they pass on the saving they get then ot could help the average family play. Bu they are not going to discount high end any further. it would be interesting to see if Graf stays in PHL.

I was referring not to CT's power, but to PHL/Sports Rousseau.

[oldtrainerguy28 478]

So Law from what I gather you are saying, the franchise stores or going to have to expand what they offer in the areas that do not have PHL or National Or Hockey Ex nearby to compete and grow? Or that the ones like say in Oakville off Dorval will have to expand to compete? I can not see that happening anywhere like that. You have 3 Hockey stores in a 1 mile block radius. If CT was to do the same and the prices were all equal I think your right some may just go back to they felt gave the best service regardless that 3 of the 4 would be owned by the same company.

interesting dilema though.

And Aireaye even before they bought FGL they had great buying power after may have been slightly better but with PHL it makes zero difference their discounts I cant see getting any better, The may be able to dictate what they want made for each brand better as they own all but Source now.

[Law Goalie 147]

That seems to be their plan, yeah: eliminate competition where CT's are near existing big-box hockey shops, integrating those brands into their stores where they have the most pull (e.g. Rousseau in Quebec, and maybe the Maritimes) and then use their new position in hockey to at least *offer* the other CT franchises their own Hockey Experts/PHL/whatever hockey section. The only reason the CT hockey boutique in Kingston worked is that practically all the other hockey shops had died, and the CT owner was a hockey guy; he hired the local talent that was left and picked up must of the supply the closing LHS's dropped, but he also had a serious passion for it.

[Davetronz 109]

[...] It would be interesting to see if Graf stays in PHL.

This.

If they stay at PHL, they'll likely keep their prices protected at what Graf sets.

I don't think we'll see Graf in places like Hockey Experts, and definitely not at CT.

It would also be interesting to see if Gongshow ends up in HE and CT.

[AIREAYE 248]

This.

If they stay at PHL, they'll likely keep their prices protected at what Graf sets.

I don't think we'll see Graf in places like Hockey Experts, and definitely not at CT.

It would also be interesting to see if Gongshow ends up in HE and CT.

Never had Graf, I personally don't see that happening.

Interested to see if there will be a lifestyle product line expansion however. IIRC, Bauer apparel was dropped some time ago.

So Law from what I gather you are saying, the franchise stores or going to have to expand what they offer in the areas that do not have PHL or National Or Hockey Ex nearby to compete and grow? Or that the ones like say in Oakville off Dorval will have to expand to compete? I can not see that happening anywhere like that. You have 3 Hockey stores in a 1 mile block radius. If CT was to do the same and the prices were all equal I think your right some may just go back to they felt gave the best service regardless that 3 of the 4 would be owned by the same company.

interesting dilema though.

And Aireaye even before they bought FGL they had great buying power after may have been slightly better but with PHL it makes zero difference their discounts I cant see getting any better, The may be able to dictate what they want made for each brand better as they own all but Source now.

What PHL currently lacks, CT has all of the tools and abilities to improve it. If they put a good effort into making PHL (or whatever hockey flagship brand it ends up being) less flashy and more honest, they could have a powerhouse. Get those prices lower, have more sales going and improve customer service. They already have the selection, they already have a good distribution system and they have an important 'wow' factor in their stores. Based solely on observations of the GTA stores, they've built a less-than-stellar reputation over the years as having a fun store to visit and to ogle at, but that's about it. The prices have never been particularly generous and the service just isn't up to par. Now as I see it, there's potential to improve.

However this will take a very long time to settle. We're going to see a lot of changes in the Canadian hockey retail landscape over the next few years...

[oldtrainerguy28 478]

Sure seems like it has been a blessing that I am going on my own!!! Sure glad i don't have to figure out where my place would be in all that! But I agree it will sure be an interesting next year or 2 in the GTA!

[Chadd 916]

What PHL currently lacks, CT has all of the tools and abilities to improve it. If they put a good effort into making PHL (or whatever hockey flagship brand it ends up being) less flashy and more honest, they could have a powerhouse. Get those prices lower, have more sales going and improve customer service. They already have the selection, they already have a good distribution system and they have an important 'wow' factor in their stores. Based solely on observations of the GTA stores, they've built a less-than-stellar reputation over the years as having a fun store to visit and to ogle at, but that's about it. The prices have never been particularly generous and the service just isn't up to par. Now as I see it, there's potential to improve.

This isn't about making retail prices lower, it's about making more profit. If they own most of the places that sell gear, they won't have to worry about what the competition is charging.

[JR Boucicaut 3760]

Right, nobody expands to sell more for less.

[The MAD Line 2]

My guess is there will be no change, just like when they bought Sport Chek.

Everyone always talks about PHL's high prices, but they always seem to be the same as everyone else, except with more selection.

[AIREAYE 248]

This isn't about making retail prices lower, it's about making more profit. If they own most of the places that sell gear, they won't have to worry about what the competition is charging.

There isn't ever a single way to make profit, a long term plan is a long term plan. I'm pretty sure nobody goes in there and tells the board that the first thing they should do is to lower prices... My point was that over time as changes occur, that could be the result. Especially if the effects of a better distribution system and perhaps better buying power trickles down.

Mad Line, I wasn't talking about regular retail prices, but prices as a whole including sales and clearances.

[Chadd 916]

There isn't ever a single way to make profit, a long term plan is a long term plan. I'm pretty sure nobody goes in there and tells the board that the first thing they should do is to lower prices... My point was that over time as changes occur, that could be the result. Especially if the effects of a better distribution system and perhaps better buying power trickles down.

Not going to happen.

[adam14 182]

I wonder if CT locations will get, as mentioned PHL sections in their stores. Where I live there's a source for sports, a CT and a Sport Chek, But I have never even thought about buying anything at ct apart from socks because their selection is so atrocious.