Canadian Tire makes $771m bid for Sport Chek
09.05.11
TORONTO — The store where legions of young Canadians bought their
first pair of skates is buying the country's largest sporting goods
chain in hopes of selling those kids running shoes, skateboards and
golf clubs as they grow up.
Canadian Tire is buying The Forzani Group Ltd. in a $771-million deal it says will turn those first-time
buyers into customers for life across all of its new brands.
Forzani owns some 500 stores under various banners, including
Sport Chek and Athletes World, as well as more niche brands like
Nevada Bob's Golf and Hockey Experts.
``Parents buy kids their first bike at Canadian Tire... but as
kids get older their tastes change,'' Canadian Tire president and
CEO Stephen Wetmore said on a conference call.
``Not only do they want more expensive bikes — they want all the
apparel and gear that goes along with their cycling activities.
That's where Forzani comes into play.''
Canadian Tire already sells basic sporting equipment like skates
and bikes, but the Forzani purchase will allow it to cater to
18-to-35-year-olds, who tend to shop in malls for more specific
equipment and trendier brands. Canadian Tire's big-box format
doesn't currently have a strong foothold in malls and the chain has
already made a few changes in recent months to appeal to younger
audiences.
Source: TheChronicleHerald.ca