Petco expands shop-in-shop partnership at Canadian Tire
Canadian Tire is the seventh-largest retailer in Canada based on revenue, according to a 2022 survey from Edge by Ascential. The retailer ranked behind major chains like Loblaws, Costco, Sobeys, Walmart and Amazon. It ranked ahead of other major chains — The Home Depot, The Jim Pattison Group and RBI.
For Canadian Tire, the expanded Petco partnership is part of its new “Better Connected” strategy, unveiled last year. The strategy aims to “make life in Canada better” and involves a $3.4 billion investment in significant improvements to its omnichannel experience for consumers. According to a 2022 release, the retailer’s strategy includes greater partnerships with other retailers and brands, like Petco, Levi’s and Reebok, and a greater focus on its owned brands.
The strategy also includes new store formats, including its new “Concept Connect” format, which will roll out to around 225 Canadian Tire stores, the company said. Also on the menu are larger stores, which are more than 100,000 square feet. Two locations opened last year and a third is expected to open in 2025, according to the retailer.
While small-format stores have been popular with numerous retailers during the past several years, major retailers — like Target and Sam’s Club in the U.S. — are also toying with larger-format stores, which often offer more open layouts for shopping and a larger omnichannel fulfillment area.