Overview Key strengths Key risks Canada's largest general merchandise retailer, with a strong consumer brand recognition and diverse product offering through various retail banners Soft macroeconomic conditions exacerbated by potential tariff wars and weakening consumer affordability could pressure profitability in 2025 A loyalty program with 11.7 million active members comprising 54% of its retail sales that, when combined with increasing customer engagement, should support growth Given exposure to discretionary spend, we expect the company will face more volatility compared to necessity-based retailers Good penetration of owned brands (38%), combined with broad price points for key product categories, support market share in an uncertain operating environment Ongoing competition from large broadline retailers such as Walmart Inc., Amazon.com Inc., and home improvement
