Toronto-based retailer sees the impact of changing consumer behaviour in the latest quarter
Consumers feeling the sting of inflation are cutting back on non-essential purchases, as they face higher interest rates on their mortgages and steep prices for basic necessities such as groceries.
“The current high inflation rates have led customers to prioritize essential products over higher-ticket discretionary ones,” Mr. Hicks said on the call, adding that shoppers are “mindful” of their spending as they renew mortgages at higher interest rates, and also return to spending money in areas that declined during the pandemic, such as travel and restaurant dining.reported a revenue decline as shifting consumer sentiment led to fewer big-ticket appliance purchases.
While purchases of essential items such as pet food and automotive products remained relatively strong in the first quarter, Canadian Tire reported on Thursday that its earnings were affected by changing consumer behaviours, as well as an unusually warm winter and a slow start to spring that contributed to weakened demand for seasonal products.Canadian Tire reported its overall revenue declined by 3.4 per cent in the 13 weeks ended April 1, to $3.7-billion.
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