Our Approach
1
We work with internal teams, suppliers and industry partners to meet and
improve standards every year
We take a multi-faceted approach to product safety and quality that aims to ensure that everything we sell
meets our quality and safety expectations. Our efforts integrate the expertise of merchants, buyers, product
developers and designers; mechanical, electrical and industrial engineers; and quality control and
compliance analysts.
This has been an area of focus for our Company for many years, and we are proud of our continual progress
and success. We make use of many tools, processes and strategies including construction specifications, new
products assessment protocols, root cause analysis measures for defective products, and validation processes
for corrective action plans.
Delivering quality products to customers
The greatest indicator of how well our product teams have done their jobs is in our defective claim
rates and our product return rates. We are proud to say that our focus and attention in this area has
resulted in some of the lowest defective claim and product return rates in the industry. At Canadian
Tire stores, our current defective claim rate1 is 0.85%, and we have consistently achieved defective
claim
rates below 1% over the last five years. Our customer product return rate2 is 3.11%.
Defective Claim Rate
0.85%
Product Return Rate
3.11%
When the unfortunate situation of a product recall with one of our suppliers or products occurs, we immediately
work to get the message out to customers who may have purchased that product. In addition to amplifying the
manufacturer's message, we use our available Triangle Rewards membership data to reach customers directly so
that we may prevent them from experiencing any potential harm. Out of the tens of thousands of products sold
through CTC in 2021, 30 were involved in a consumer recall, a small increase from 29 in 2020.
We actively participate in several product safety associations and committees, including International Consumer
Product Health and Safety Organization; Retail Council of Canada's Product Safety Committee; Retail Industry
Leaders Association's Product Safety Committee; and American Apparel & Footwear Association's Product Safety
Council. We are also active with various standards development organizations that focus on product safety and
sustainability standards, including Canadian Standards Association, Underwriters Laboratories,
Canadian General Standards Association, and International Organization for Standardization (ISO). In addition, the
Company benefits from our activities on Standards Council of Canada committees that are focused
on consumer interests and sustainability, which influence the federal government's Canadian Environmental
Protection Act's Chemical Management Plan. Our work with these associations and committees allows us to stay
comprehensively up-to-date on best practices regarding the use of safe materials across our business.
Most of the facilities that produce our owned brands are ISO 9001 certified. In 2021, we spent 2,358 person-days
in Asia assessing facility capabilities and monitoring production within our supplier chain. These facilities
are also subject to amfori Business Social Compliance Initiative social compliance audits. Learn more in our Human
Rights & Social Responsibility section.
Our work with these associations and committees allows us to stay comprehensively up-to-date on best practices regarding the use of safe materials across our business.
2
We perform continuous and rigorous product testing
For our owned brands, we perform in-house and third-party testing and product evaluations during the
development and prototype stages. We also perform testing randomly during the product life-cycle to ensure
manufacturing and design consistency.
We rely on a risk framework based on the product, vendor and brand in order to implement a
testing and inspection plan targeting the highest risk and most impactful products. In 2021, we engaged in
close to 13,000 third-party product tests, over 10,000 pre-shipment inspections and more than 11,000 sample
reviews before
production started.
Our teams also leverage feedback from our online reviews, stores, After Sales Service, supply chain
partners, and returns and defective metrics in order to improve upon products after they are in the field.
In 2021, roughly 1,300 consumer complaints were reviewed by our Product Quality team. Our process of
investigating
complaints and analyzing issues with products often includes working with vendors directly to share our data
and solutions, in order to prevent recalls from occurring. For example, we reduced our defective claims of
pressure washers by 20% in 2021 by sharing our consumer returns data and our engineers' analysis with our
supplier. This allowed all parties to avoid financial impacts and improve manufacturing efficiencies.
TESTED for Life in Canada
Our Canadian Tire banner's TESTED for Life in Canada program tests thousands of products using qualified testers
who understand and share the same needs as our customers. These testers use and examine our products in
real-life settings, examining every feature and function to ensure that these products are suited for
life in Canada. Honest feedback is then collected to help fellow Canadians make informed decisions on
products for their everyday lives. Only products that have an average rating of 4+ stars earn our
TESTED badge. Learn more about our TESTED for Life in Canada program here.
3
We actively seek safer and more durable materials
Our customers share our concerns about the safety and durability of our products. That is why we continue to
work diligently to ensure our products remain safe and do not pose a risk to health or the environment when
used and disposed of as directed. For example, for more than a decade, we have been adopting safer
alternative substances and chemicals to replace materials where there is scientific evidence of health or
environmental risks.
We maintain a Safer Chemicals Policy and continue to make updates based on
our comprehensive data gathering and involvement in international industry safety associations. Some actions we are focusing on to improve the health and safety of our customers include:
-
removal of Bisphenol A (BPA), phthalates, heavy metals and cellulose nitrate from all children's
products;
-
elimination of BPA from cash register receipts since 2018, and working towards eliminating Bisphenol S
(BPS) and Bisphenol F (BPF);
-
removal of phthalates and heavy metals from food-contact products;
-
removal of volatile organic compounds from all paints;
-
adoption of the European Union's REACH chemical restrictions for apparel under our Helly Hansen banner;
-
all of Mark's products' stain repellency treatments are free of perfluorooctanoic acid (PFOA) and perfluorooctane
sulfonate (PFOS); and
-
early adoption of the industry-standard bluesign system for environmental standards in textiles by Helly
Hansen.
We are making products that are built to last
When we provide Canadians with durable products, the result is saved money, time, and fewer discarded
items. We are always adding items to our shelves that serve as good alternatives to disposable options,
such as a wider selection of quality food storage containers and rechargeable batteries.
Smart design is also part of this solution
For example, many kids' items in our Helly Hansen winter apparel category feature extendable arms and
legs – so that the items can grow with the kids. We also build our kids' apparel with super durable
material so that it can withstand rough wear and tear. As evidence of our commitment to durability, many
of our products come with a name tag with three separate lines for three separate names – a symbolic and
useful way to mark the many kids who will be using the same gear for years to come.