There’s about to be a lot less Canadian Tire Corp (TSX: CTC) gas stations in Canada. The company last night announced a new partnership with Suncor’s (TSX: SU) Petro-Canada that will see hundreds of Canadian Tire Gas+ locations rebranded to the Petro-Canada banner.
The partnership appears to be based around Canadian Tire securing a competitive fuel source for its fuel stations. Under the partnership Suncor will become the primary provider of fuel for the firms retail fuel network, which is expected to amount to more than a billion litres of fuel per year. The figure translates to a 17% increase in retail sales volume for its Petro-Canada division.
In exchange for that fuel agreement, over 200 of Canadian Tire’s Gas+ retail fuel stations will be rebranded to the Petro-Canada banner, although Canadian Tire will retain ownership of the locations. The change however is expected to bring additional business to the locations, with the deal opening up Petro’s commercial fleet program customers to the fuel stations while leveraging Suncor’s scale and operating infrastructure. Low carbon energy alternatives are also expected to be added to the sales mix.
Finally, the Petro-Points and Triangle Rewards loyalty programs will see added value, with each program expanding to include all Canadian Tire Gas+ and Petro-Canada locations. Triangle Rewards currently has over 11 million active members, while Petro-Points has 3 million active members.
“This partnership is a tangible example of our commitment to optimize our retail network and expand strategic partnerships for Petro-Canada. It brings together Petro-Canada, the leading and most trusted gas station brand in Canada, with Canadian Tire Corporation, an iconic Canadian retailer,” said Suncor CEO Rich Kruger.
READ: Suncor Energy Drops $5.5 Billion To Acquire TotalEnergies Canadian Operations
Canadian Tire Corp last traded at $310.00 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
