This year’s Leger poll wasn’t particularly kind to a couple of Canada’s household names — notably Sears Canada and Tim Hortons, respectively owned by Sears Holdings Corp. (NASDAQ:SHLD) and Restaurant Brands International Inc. (TSX:QSR)(NYSE:QSR) — but there were a few iconic Canadian brands that maintained their statuses as companies that are near and dear to Canadian’s hearts (and wallets).
The Leger poll is an annual survey that takes into consideration the views of over 2,000 Canadians to try and determine which brands Canadian consumers admire the most. Factors that help determine a company’s or brand’s reputation include things like service quality, transparency, and trust.
It shouldn’t be surprising that a brand’s popularity or reputation would be linked to strong financial performance. After all, consumers spend with their hearts as much as they do with their heads.
Let’s take a closer look at what makes three of Canada’s top brands so special.
Canadian Tire Corporation Limited (TSX:CTC.A) has long been a staple of Canadians’ household budget.
Canadian Tire carries an assortment of all kinds of household necessities from kitchenware to holiday items to sporting goods and auto parts.
At certain locations, the company also operates gas stations, which, in the first quarter of this year, helped lead to a 6.4% increase in revenues.
Excluding petroleum sales, the company still fared well, with retail sales up 5.1%, including an increase in same-store sales of 5.8%.
Earlier this month, the company announced the launch of its new Triangle Rewards program, which, if the latest poll results are accurate, could help the company to strengthen the loyalty it currently enjoys with its customer base.
Loblaw Companies Ltd. (TSX:L) owns one of Canada’s largest supermarket chains and bolstered its retail position in Canada with the acquisition of Shoppers Drug Mart back in 2013.
Combined, the two retail chains lay claim to some of the more eye-catching in-store displays within the Canadian retail market, and the Shoppers Drug Mart acquisition helps by giving Loblaw greater exposure to prescription drug sales — a segment of the market that is expected to experience above-average growth thanks to the rising retirement age population and increased spend on health care.
In a rapidly changing retail environment that has been forced to adapt to the very real threat of e-commerce, thrift chain Dollarama Inc. (TSX:DOL) has been fortunate to find itself pretty much immune to the declines in same-store sales and margin pressures that have plagued so many of its brick-and-mortar peers.
The company has been enjoying success in raising the average ticket price of its in-store inventory, which has helped it to raise average transaction prices while boosting margins.
With plans to continue adding stores at an average pace of around 60 per year between now and 2027, Dollarama is one of the rare Canadian growth stories you’ll want to keep your eye on.