Giant Tiger
   HOME

TheInfoList



OR:

Giant Tiger Stores Limited is a Canadian discount store chain which operates over 260 stores across Canada. The company's stores operate under the Giant Tiger banner in
Alberta Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...
,
Manitoba Manitoba is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population ...
,
New Brunswick New Brunswick is a Provinces and Territories of Canada, province of Canada, bordering Quebec to the north, Nova Scotia to the east, the Gulf of Saint Lawrence to the northeast, the Bay of Fundy to the southeast, and the U.S. state of Maine to ...
,
Nova Scotia Nova Scotia is a Provinces and territories of Canada, province of Canada, located on its east coast. It is one of the three Maritime Canada, Maritime provinces and Population of Canada by province and territory, most populous province in Atlan ...
,
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
,
Prince Edward Island Prince Edward Island is an island Provinces and territories of Canada, province of Canada. While it is the smallest province by land area and population, it is the most densely populated. The island has several nicknames: "Garden of the Gulf", ...
and
Saskatchewan Saskatchewan is a Provinces and territories of Canada, province in Western Canada. It is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and to the south by the ...
; under the GTExpress and Scott's Discount banners in
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
and under the Tigre Géant banner in
Quebec Quebec is Canada's List of Canadian provinces and territories by area, largest province by area. Located in Central Canada, the province shares borders with the provinces of Ontario to the west, Newfoundland and Labrador to the northeast, ...
. As of 2021, the chain reported annual sales of roughly $2 billion and employed about 10,000 people. Its headquarters are located on Walkley Road in
Ottawa Ottawa is the capital city of Canada. It is located in the southern Ontario, southern portion of the province of Ontario, at the confluence of the Ottawa River and the Rideau River. Ottawa borders Gatineau, Gatineau, Quebec, and forms the cor ...
. In 2018, the company opened a distribution centre in Johnstown, halfway between Montreal and Toronto, at the intersection of Ontario's
Highway 401 King's Highway 401, commonly referred to as Highway 401 and also known by its official name as the Macdonald–Cartier Freeway or colloquially referred to as the four-oh-one, is a controlled-access 400-series highway in the Canadian prov ...
and Highway 416. It is a participant in the voluntary
Scanner Price Accuracy Code The Scanner Price Accuracy Code is a Canadian retail voluntary practice managed by the Retail Council of Canada and endorsed by the Competition Bureau. It was introduced in June 2002 as Canadian retailers were in the midst of updating their poin ...
managed by the
Retail Council of Canada The Retail Council of Canada (), founded in 1963, is a not-for-profit trade association representing retail Retail is the sale of goods and services to consumers, in contrast to wholesaling, which is the sale to business or institutio ...
.


Business model


Inspiration

In the mid and late 1940s, Giant Tiger founder Gordon Reid, who was then in his early twenties, was a travelling salesman for an importer in the United States.Gordon Pitts, "Tightwad philosophy keeps Tiger running", ''Ottawa Citizen'', September 27, 1980. In the American
Midwest The Midwestern United States (also referred to as the Midwest, the Heartland or the American Midwest) is one of the four census regions defined by the United States Census Bureau. It occupies the northern central part of the United States. It ...
, Reid first saw discount stores. Discount stores were a new concept at the time. He was particularly impressed by Uncle Bill's, a chain headquartered in
Cleveland, Ohio Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, Ohio, Cuyahoga County. Located along the southern shore of Lake Erie, it is situated across the Canada–United States border, Canada–U.S. maritime border ...
, which was one of his clients. The discount store concept did not yet exist in Canada, and it therefore represented a business opportunity. Reid reports that he was also inspired by Frank Woolworth’s continent-wide success, half a century earlier, in creating hundreds of profitable Five-and-Dime stores. Reid’s own retail experience, dating back to his first job as a teenager, had been in
department stores A department store is a retail establishment offering a wide range of consumer goods in different areas of the store under one roof, each area ("department") specializing in a product category. In modern major cities, the department store made ...
rather than in discount, but his mother had worked behind the luncheon counter at a Woolworth’s in
downtown Montreal Downtown Montreal (French language, French: ''Centre-Ville de Montréal'') is the central business district of Montreal, Quebec, Canada. The district is situated on the southernmost slope of Mount Royal, and occupies the western portion of the ...
.Vito Pilieci, "New CEO grabs Tiger by the tail", ''Ottawa Citizen'', October 15, 2010. Reid stated, four decades later, that he had believed, even at this early stage, that it would be possible to build a Canada-wide chain based on this model. Asked by a reporter whether he had ever imagined that Giant Tiger would eventually have the success it was then enjoying, Reid stated, "Yes. That was the original intention. The idea for the business came when I was a travelling salesman. I saw the discounters growing. My original inspiration was the F. W. Woolworth Co., obviously that was a big chain. So this was always the plan."


Ownership structure

Key head office personnel were co-owners of Giant Tiger Stores Limited. Initially, Giant Tiger’s head office was quite small; and ownership was therefore shared among a small number of people. By 1980, ownership had been shared between Reid and ten key employees.Gordon Pitts, "Tightwad philosophy keeps Tiger running. ''Ottawa Citizen'', September 27, 1980. Gordon Reid has stated that Canada’s agricultural cooperative movement was his inspiration for this innovation. Making his employees into part-owners of the company ensured that, as in the co-op movement, all employees would share a common interest in maximizing profits.


Franchise system

Giant Tiger #1, opened in Ottawa's historic
Byward Market The ByWard Market (), is a retail and entertainment district in the downtown core of Ottawa, Ontario, Canada. It is located east of the government and business district. The Market district includes the market buildings and open-air market alo ...
in 1961, was company-owned. The first franchised Giant Tiger was opened by Jean-Guy Desjardins in Maniwaki in 1968. As Reid would explain it forty years later, from the moment the change was made, "the aniwakistore made money and I didn't have to do anything. ean-Guy Desjardinsdid the advertising, he found the location, he merchandised it to suit his customers, he did everything ... And, I thought, 'by golly, that's a good system.'"Kristin Goff,
Canada’s national Tiger
", ''Ottawa Citizen'', November 17, 2007.
Because the chain most often has been shoehorned into existing spaces now too small for the major
big-box store A big-box store, a hyperstore, a supercenter, a superstore, or a megastore is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The ...
or
hypermarket A hypermarket or superstore is a big-box store combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full grocery lines and general merchandise. In ...
chains, individual store managers are given wide leeway in ordering decisions and are free to devote their limited floor space to items which sell well in their local market. This flexibility, and a distribution system in which stores are restocked daily, allows stores to "pull" only the inventory they immediately need and facilitates greater turnover per square foot of scarce retail space. In 2010, Reid reported that the issuing of no-cost franchises to experienced retailers "was a great way to get experienced people. Over the years we had a lot come from Woolworth, Kresge,
Kmart Kmart ( ), formerly legally registered as Kmart Corporation, now operated by Transformco, is a department-store chain and online retailer in the United States and Territories of the United States, its territories. It operates four remaining Kma ...
and later
Zellers Zellers was a Canadian discount store chain founded by Walter P. Zeller in 1931. It was acquired by the Hudson's Bay Company (HBC) in 1978, and after a series of acquisitions and expansions, peaked with 350 locations in 1999. However, fierce ...
." In the same interview, Reid stated that over twenty Giant Tiger franchises are now run by former
Walmart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...
employees, most of whom had been attracted by the same franchise system that he had introduced decades earlier.


History


Number of stores

Gordon Reid opened the first Giant Tiger store, on George Street in Ottawa’s
Byward Market The ByWard Market (), is a retail and entertainment district in the downtown core of Ottawa, Ontario, Canada. It is located east of the government and business district. The Market district includes the market buildings and open-air market alo ...
, on May 13, 1961, with a $15,000 investment.Laurie McBurney, "Giant Tiger roars loud in the discount jungle". ''Ottawa Citizen'', November 29, 1999, p. D3. First year sales of $139,781 were far lower than Reid had anticipated, and by the end of 1962, he decided to close the store. Unexpectedly, the rush of customers attracted by his going out of business sale provided enough cash flow to keep the business afloat.David Scanlan, "King of the Discount Jungle", in ''Ottawa Citizen'', October 18, 1991, p. F1. Although the store survived, expansion was slow. A second location, in the small town of
Brockville Brockville is a city in Eastern Ontario, Canada, in the Thousand Islands region. Although it is the seat of the United Counties of Leeds and Grenville, it is politically Independent city, independent of the county. It is included with Leeds and ...
, was not opened until 1965. By the time, of the company's tenth anniversary, in 1971, it still had only six stores. As of 2018, there are 230 stores, the most recent three being opened on October 12, 2018, in
Saskatoon Saskatoon () is the largest city in the Provinces and territories of Canada, Canadian province of Saskatchewan. It straddles a bend in the South Saskatchewan River in the central region of the province. It is located along the Trans-Canada Hig ...
, Windsor and
Hamilton Hamilton may refer to: * Alexander Hamilton (1755/1757–1804), first U.S. Secretary of the Treasury and one of the Founding Fathers of the United States * ''Hamilton'' (musical), a 2015 Broadway musical by Lin-Manuel Miranda ** ''Hamilton'' (al ...
. The 2015, withdrawal of
Target Canada Target Canada Co. was a short-lived Canadian subsidiary of the Target Corporation, the eighth-largest retailer in the United States. Formerly headquartered in Mississauga, Ontario, the subsidiary formed with the acquisition of Zellers store lea ...
from the marketplace presented an expansion opportunity for Giant Tiger. Its first acquisition of a Target store occurred in
Fergus, Ontario Fergus is the largest community in Centre Wellington, a township within Wellington County, Ontario, Wellington County in Ontario, Canada. It lies on the Grand River (Ontario), Grand River about 18 km NNW of Guelph. The population of this com ...
, where of an approximately large Target store was acquired by Giant Tiger. This location opened in the spring of 2016.


Geographic expansion

In 2001, Giant Tiger and The North West Company (NWC) signed a 30-year Master Franchise Agreement that grants NWC the exclusive right to open and operate 72 Giant Tiger stores in western Canada by 2032. In 2013, thirty-one of these stores were open and NWC was eyeing expansion into older city neighbourhoods and rural towns too small to support a Target or
Walmart Walmart Inc. (; formerly Wal-Mart Stores, Inc.) is an American multinational retail corporation that operates a chain of hypermarkets (also called supercenters), discount department stores, and grocery stores in the United States and 23 other ...
. The chain has undertaken a major expansion in the Greater Toronto Area since 2005. It has opened seven stores in Bradford, Brampton, Markham (now closed), Newmarket, Scarborough and Etobicoke. The 200th Giant Tiger store opened in Nova Scotia in October 2010. In 2004, Giant Tiger opened a single store in
Potsdam, New York Potsdam is a Administrative divisions of New York#Town, town in St. Lawrence County, New York, United States. The town population was 14,901 at the 2020 census. When the State University of New York at Potsdam and Clarkson University are in sess ...
, its first (and only) in the United States. This store closed during the
Great Recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
in 2009.


Franchising

In 1968, Giant Tiger opened its first franchise stores, which now account for the majority of locations. The goal was to better serve the customer by having local owners in the stores. Between 2001 and 2020, The North West Company operated all of Giant Tiger's locations in western Canada under a single master franchise agreement. In March 2020, The North West Company announced that it would sell 34 of its 46 franchises to Giant Tiger, while closing six underperforming locations, maintaining five in northern markets, and converting one (Prince Albert) to a different banner.


New brands/trade names

In 1977, Giant Tiger established Chez Tante Marie stores in
Hull Hull may refer to: Structures * The hull of an armored fighting vehicle, housing the chassis * Fuselage, of an aircraft * Hull (botany), the outer covering of seeds * Hull (watercraft), the body or frame of a sea-going craft * Submarine hull Ma ...
and
Gatineau Gatineau ( ; ) is a city in southwestern Quebec, Canada. It is located on the northern bank of the Ottawa River, directly across from Ottawa, Ontario. Gatineau is the largest city in the Outaouais administrative region of Quebec and is also p ...
, Quebec. The Hull store closed in 2015. Another Chez Tante Marie store existed in
Lachute Lachute () is a town in southwest Quebec, Canada, northwest of Montreal, on the Rivière du Nord (Laurentides), Rivière du Nord, a tributary of the Ottawa River, and west of Mirabel International Airport, the Mirabel International Airport. It i ...
,
Quebec Quebec is Canada's List of Canadian provinces and territories by area, largest province by area. Located in Central Canada, the province shares borders with the provinces of Ontario to the west, Newfoundland and Labrador to the northeast, ...
; this store has since been rebranded as Tigre Géant. In 2017, the last Chez Tante Marie store, in Gatineau, was rebranded as Tigre Géant. In 1996, the Scott's Discount brand was launched as an alternative format for smaller stores. In 2008, Giant Tiger opened its first GT Xpress outlet at a former Giant Tiger location in Ottawa's Hintonburg neighbourhood. GT Xpress stores are intended to service less mobile residents of densely populated neighbourhoods, so that residents will not have to leave the neighbourhood to shop at a
big-box store A big-box store, a hyperstore, a supercenter, a superstore, or a megastore is a physically large retail establishment, usually part of a chain of stores. The term sometimes also refers, by extension, to the company that operates the store. The ...
. Because larger retail spaces are unavailable in such inner-city neighbourhoods, the merchandise selection at GTXpress stores is more limited than at a full-size Giant Tiger, let alone a big-box store. Traditional lines of Giant Tiger merchandise are further restricted to free up space for an expanded produce, dairy, deli and bakery section. Effectively, a GTXpress store is a discount version of a
convenience store A convenience store, convenience shop, bakkal, bodega, corner store, corner shop, superette or mini-mart is a small retail store that stocks a range of everyday items such as convenience food, groceries, beverages, tobacco products, lotter ...
, characterized by a "focus on what the customer needs today, as opposed to arrying a full assortment ofwhat the customer wants." As the ethnic makeup of individual inner-city neighbourhoods is likely to differ substantially, franchise owner at each GTXpress outlet will have the authority to tailor "product lines to cater to ethnic diversity in the area."


Trucking/warehousing

In 1987, Giant Tiger launched its own trucking fleet (known internally as Tiger Trucking)Mark McNeil, "Giant Tiger built on lots of cheap goods." ''Hamilton Spectator''. October 27, 2001, p. B2. to make regular shipments from the warehouse to stores. In 1999, it was reported that the company's trucks were making deliveries to each store three times a week.Bert Hill, "Giant Tiger keeps its stripes." ''Ottawa Citizen,'' September 15, 1999, p. D1. In 2001, Reid reported that deliveries were taking place daily: "We have the most efficient shipping and distribution system in the general merchandise field ... It is equivalent to the grocery stores. We deliver to stores five times per week. There is no one else in the general merchandise industry that does that and we do it with our own trucks." On May 31, 1996, Giant Tiger purchased and took possession of a distribution centre on Walkley Road in Ottawa, previously occupied by
Sears Canada Sears Canada Inc. was a publicly-traded Canadian company affiliated with the American-based Sears department store chain. In operation from September 18, 1952 until January 14, 2018, and headquartered in Toronto, Ontario, the company began as S ...
. The company's headquarters moved to this location later the same year. In December 2005, Giant Tiger opened a new distribution centre for frozen and refrigerated products in
Brockville Brockville is a city in Eastern Ontario, Canada, in the Thousand Islands region. Although it is the seat of the United Counties of Leeds and Grenville, it is politically Independent city, independent of the county. It is included with Leeds and ...
,
Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...
. In 2018, the company opened a distribution centre in Johnstown, halfway between Montreal and Toronto, at the intersection of Ontario's
Highway 401 King's Highway 401, commonly referred to as Highway 401 and also known by its official name as the Macdonald–Cartier Freeway or colloquially referred to as the four-oh-one, is a controlled-access 400-series highway in the Canadian prov ...
and Highway 416.


Changes in management structure and key personnel

In October 2010, Reid stepped down as
chief executive officer A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
of Giant Tiger, in favour of Andy Gross, a 25-year veteran with the chain, who started working as a buyer when there were fewer than thirty stores. Gross had, by this time, already inherited the presidency from Jeff York. Gross decided to retire effective August 1, 2014, and was then replaced as president and COO by Greg Farrell, who in turn was replaced on March 1, 2015, by former
Zellers Zellers was a Canadian discount store chain founded by Walter P. Zeller in 1931. It was acquired by the Hudson's Bay Company (HBC) in 1978, and after a series of acquisitions and expansions, peaked with 350 locations in 1999. However, fierce ...
president and COO Thomas Haig. As of 2015, Reid retains the posts of
chairman of the board The chair, also chairman, chairwoman, or chairperson, is the presiding officer of an organized group such as a Board of directors, board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by ...
and CEO. A proposal to sell the company was briefly raised in October 2013, but soon abandoned.


See also

* List of Canadian department stores


References


External links

* {{Official website Companies based in Ottawa Retail companies established in 1961 Department stores of Canada Discount stores of Canada Shops in Ottawa Privately held companies of Canada 1961 establishments in Ontario