Canadian Tire to remove every second aisle in favour of more inventory

TORONTO, ON – Canadian Tire Corporation Limited has announced plans to shrink the number of aisles in their stores by 50% so the company can load in more inventory.

Those familiar with the automotive, hardware, sports, and home products retailer know that inventory throughout the locations is plentiful.

Canadian Tire conducted an 8-month study of 36 locations and determined that on average there was excess capacity of 1.4 m throughout the aisles and another 83 cm between the top of the shelf and the ceiling which could be used for additional inventory.

The retailer reportedly rejected a proposal to reduce the level of inventory to improve cash flow and decrease the amount of working capital tied up in seasonal inventory.

The changes are expected to be implemented before the beginning of the spring gardening and home renovation cycle.