Excerpted from the Financial Post:
At first blush, Greg Hicks, chief executive of Canadian Tire Corp. Ltd., has a different resumé than many previous recipients of Canada’s Outstanding CEO of the Year award who were either the company’s founder or, in a couple of cases, sons or daughters of the founders or longtime CEOs.
Hicks has run Canadian Tire since March 12, 2020, one day after the World Health Organization declared COVID-19 a global pandemic, but the retailer has been around for 105 years, founded by brothers John and Alfred Billes.
Dig a little deeper, however, and you’ll find that Hicks’ dad worked for the company as both an executive and a dealer, his two uncles were dealers as well and his brother is one today. He also worked in his dad’s store and, prior to becoming CEO, held a variety of jobs, including president of Canadian Tire Retail, overseeing more than 500 stores. He’s worked outside the company, of course, but the retail chain is in his blood.
“For the majority of my life, it’s always been about the Tire. And from that standpoint, this wasn’t just another job for me; it was the job,” he said. I consider myself extremely fortunate to lead such an iconic brand that means so much to Canada. There’s just this deep connection that comes with understanding that it is a part of who I am. It’s a part of the family. From that standpoint, it’s literally a part of me.”
Canadian Tire’s market cap plummeted to $4.8 billion on March 23, 2020, but has since more than doubled to about $10.2 billion even though revenues have largely flatlined. That speaks to the company’s history of dividends and share buybacks as well as investors’ belief that Hicks and his team can overcome any challenges presented to them.
For example, the pandemic and the resulting shift to online shopping put the spotlight on Canadian Tire’s weak website at the time and supply chain challenges, something addressed by the multi-billion-dollar Better Connected strategy he implemented in 2022.
Now, Canadian consumers are trying to cope with a choppy job market, costly mortgage renewals and uncertainty surrounding tariffs and the Canada-United States-Mexico Agreement. Slower population growth is another headwind for retailers.
To help deal with all of that and other issues, Hicks introduced the True North program a year ago. It’s a four-year growth strategy focused on data-driven customer relationships, something helped by the use of artificial intelligence (AI), core retail growth, an expanded Triangle Rewards loyalty system and better capital allocation.
“We have also long viewed Canadian Tire as a leader in data analytics and believe that its work on leveraging AI within its organization is a natural extension of this,” CIBC Capital Markets said in a note on Feb. 9. “The company is pushing this beyond operational effectiveness and efficiency to driving sales in the form of individually personalized offers to consumers.”
The CEO of the Year Advisory Board said it chose Hicks for both the contributions he’s made to the growth of an iconic retailer and for his commitment to building an organization that serves all Canadians.
“He has championed a number of initiatives that reflect his commitment to community and inclusion, from helping millions of kids access sports through Jumpstart to forging partnerships for Indigenous reconciliation,” Fatima Laher, chair of the CEO of the Year Advisory Board and deputy chair and senior partner of Deloitte Canada and Chile, said. “He has shown he is not just growing a business; he is strengthening the fabric of our communities, and in doing so, has created a model for others to follow.”
Find the full article and interview with Greg Hicks here.
Selecting Canada’s Outstanding CEO of the Year
Celebrating its 36th anniversary this year, Canada’s Outstanding CEO of the Year award was established by executive search firm Caldwell in 1990. This highly respected award honours an executive in Canadian business who exemplifies integrity, insists upon excellence, earns the trust of others and has built a globally competitive organization. It is the preeminent recognition for Canadian CEOs.
Canada’s Outstanding CEO of the Year advisory board comprises more than 20 of the country’s most respected business leaders and academics, including past honourees of the award. The board meets annually to select the current year’s recipient based on five key criteria: vision and leadership, corporate performance, global competitiveness, innovation and social responsibility.
