Triangle Rewards is a cornerstone of CTC's Better Connected strategy, driving significantly higher sales per member and sustained growth over time. Engaged Triangle Rewards members spend, on average, more than twice as much as non-members, and those with a Triangle credit card represent some of CTC's most valued and engaged customers.
"This move enables us to expedite key elements of our Triangle Rewards strategy to stay relevant to customers' changing needs and expand our credit card program to unlock even greater value for shareholders," said
CTC will evaluate strategic alternatives for its financial services business to be undertaken with Goldman Sachs as the company's financial advisor during 2024. Consideration will be given to the optimal ownership structure of the CTFS business and to driving sustainable value in the Triangle Rewards program and credit card portfolio, building on CTFS' strong track record of long-term growth.
Since 2014, the number of Triangle credit cardholders has increased from 1.8 million to 2.3 million and receivables have grown by more than 60% to approximately
Scotiabank will continue to provide a committed credit facility of
CTC will record a charge of
The
This press release contains forward-looking information within the meaning of applicable securities laws, which reflects management's current expectations regarding the repurchase of Scotiabank's 20% interest in CTFS (the "Repurchase") and future events. All statements other than statements of historical facts contained in this press release may constitute forward-looking information, including, but not limited to, statements concerning: the expected benefits of the Repurchase, including with respect to CTC's ability to expedite its Triangle Rewards strategy, expand its credit card program, deliver added value to its loyalty members (including through an acceleration of the issuance of eCTM); CTC's intention to evaluate strategic alternatives for its financial services business; Scotiabank's continued provision of banking services to CTFS; the accounting treatment of the Repurchase; and the impact of the transaction on 2024 normalized earnings. CTC has provided these forward-looking statements for the purpose of presenting information about management's current expectations and plans relating to the Repurchase and readers are cautioned that these statements may not be appropriate for other purposes. Forward-looking statements are based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management, made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made. Forward looking information is necessarily subject to a number of business, economic, competitive and other risk factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information. For information on the material risk factors and uncertainties and the material factors and assumptions applied in preparing the forward-looking information that could cause the Company's actual results to differ materially from predictions, forecasts, projections, expectations or conclusions, refer to section 10.0 (Key Risks and Risk Management) of the Company's Q2 2023 MD&A as well as CTC's other public filings, available at https://www.sedarplus.ca and at https://investors.canadiantire.ca. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.
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