The Globe and Mail reports in its Friday, Aug. 8, edition that consumer confidence may be low, but shoppers are resilient, boosting sales growth for Canadian Tire in the second quarter despite profit declines due to restructuring costs. The Globe's Susan Krashinsky Robertson writes that factors such as low interest rates, the cancellation of the federal carbon tax and strong support for domestic retailers amid U.S. tariffs have contributed to this spending, according to chief executive officer Greg Hicks. He told analysts during a conference call to discuss the second quarter results: "While it's tough to quantify, we have no doubt that patriotic purchasing is real and working in our favour. Simply put, Canadians are visiting us more." The quarterly results included signs that consumers are spending more freely on non-essential products.
Purchases grew in both discretionary categories, such as seasonal products and gardening, and more essential purchases such as automotive products and services. At the flagship Canadian Tire chain, comparable sales grew 6.4 per cent, during what the company called its "most discretionary quarter."
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