The standout performance of its auto division underscored a broader consumer focus on essential goods and services across the company's banners as inflation erodes discretionary incomes in
At its
"The automotive division once again posted strong growth as it has done for 10 consecutive quarters now," chief financial officer
"Automotive was up five per cent and auto maintenance and light auto parts did particularly well both at
TJ Flood, president of the
Customers will be able to book service appointments online and communicate directly via text message with technicians, who will be equipped with new auto service tablets, he said.
"When you think about the average age of the fleet in
Overall,
Revenue totalled
SportChek comparable sales fell 1.7 per cent in the quarter.
Also, aggressive promotions offered by brands like Nike and Adidas in their direct-to-consumer stores and online prompted SportChek to offer sales earlier in the year than usual, he said.
"When Nike or Adidas' (business to consumer) stores mark down the same inventory that we're carrying in our stores, it becomes pretty difficult for us not to react," Hicks said.
Meanwhile, Helly Hansen revenue gained 20.6 per cent compared with a year earlier amid strong sportswear, workwear and e-commerce sales, he said.
Mark's — formerly
The company plans to expand its industrial workwear assortment and will test a new Mark's "pro store" concept this year, Hicks said.
Across the company's banners, consumer spending has softened since September and is expected to remain muted for the first six months of 2023, he said.
"We are expecting a more constrained demand environment as we look forward," Hicks told analysts.
At the
Through data collected through its credit card users and Triangle rewards loyalty program, Hicks said spending patterns have changed in some surprising ways.
"Higher income Triangle members spending growth softened in the quarter relative to previous quarters," he said, adding that higher income households participated in more discretionary spending during the pandemic.
But lower- and middle-income earners accelerated spending, Hicks said.
"We think these are bullish indicators of our increased relevance in a tougher economic backdrop," he said. "We can provide value to lower income segments of the market."
This report by The Canadian Press was first published
Companies in this story: (TSX:CTC.A, TSX:CTC)
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