Mr. T.J. Flood reports

CANADIAN TIRE CORPORATION PUTS $200 MILLION BEHIND MARK'S NEW STORE FORMAT, OPENS THE BRAND'S LARGEST STORE YET IN THUNDER BAY

Canadian Tire Corp. Ltd. is investing $200-million in Mark's stores through 2028, building on the success of Mark's new bigger, bolder, better store concept. The latest step is the opening of Mark's largest store to date in Thunder Bay, Ont., as the retailer continues to transform its store network and omnichannel customer experience.

The new store concept is part of CTC's True North strategy, a four-year transformative growth plan that includes $2-billion in capital investment, focused on data-driven customer relationships, core retail growth, an expanded Triangle Rewards loyalty ecosystem and focused capital allocation. That includes investments in modern store formats designed to improve sales, margin and customer experience. CTC is increasing its investment in Mark's, building on the banner's record of strong returns and opportunities to grow its share of the casual apparel market.

"Mark's is a great example of True North in action," said T.J. Flood, chief operating officer, Canadian Tire. "When something's working, we back it. The bigger, bolder, better stores are bringing new customers to Mark's and delivering strong results, and this investment lets us bring that experience to more communities across the country."

"For nearly 50 years, Mark's has built a deep understanding of the ways Canadians live and work," said P.J. Czank, president, Mark's. "The strong response to our new stores gives us confidence to bring the experience to even more Canadians. We're creating more choice, bringing more great brands to our customers and building a better shopping experience for the future."

Since opening the first new-format locations, CTC has reported strong growth from these stores, which have become a key driver of growth for Mark's. The format better enables Mark's expansion of its casualwear business, while building on its strength in industrial workwear, creating more space for leading national and owned brands and introducing the banner to new customers.

Mark's currently operates 21 new-format locations across Alberta, British Columbia, Manitoba, Ontario and Quebec. Over the course of 2026, new stores have opened in Calgary, Edmonton, Lloydminster, Sarnia, Guelph and North Bay in addition to Thunder Bay, with plans to open one more by year-end. By the end of 2028, 40 of Mark's 387-store network are expected to be new or converted to the new format. The expanded rollout will bring the new Mark's brand experience to customers in major Canadian urban centres and regional markets.

At more than 36,000 gross square feet, the new Thunder Bay location brings the concept to life through a larger footprint, broader assortments, upgraded fitting rooms, a new service model and greater omnichannel convenience. The store features expanded casualwear and workwear offerings including dedicated shop-in-shop experiences from leading brands such as Columbia, Silver Jeans, Carhartt, Timberland and Levi's, supporting Mark's position as Canada's largest seller of the iconic denim brand.

The stores are also helping Mark's reach a broader customer base, with particularly strong response from women and younger customers. New customer acquisition at Mark's is up nearly 50 per cent at new-format stores, compared with 7.5 per cent for the rest of Mark's store network. While Mark's remains a leader in industrial workwear, the banner's evolving brand strategy is expanding its relevance in casualwear. Customers are responding strongly to the broader assortment of casual brands available at Mark's, including its owned brands like Wind River and Denver Hayes, reinforcing the opportunity to introduce more Canadians to the banner.

As Mark's evolves its store experience, the retailer is also introducing a refreshed visual identity and brand positioning, better everyday. The platform reflects Mark's commitment to helping Canadians make the most of everyday moments through products, solutions and experiences designed around how they live and work.

About Canadian Tire Corp. Ltd.

Canadian Tire has been a proudly Canadian business since 1922. Guided by its brand purpose, "We are here to make life in Canada better," CTC has built an expansive national retail presence, exceptional customer trust and one of Canada's strongest work forces -- employing, along with its local dealers and franchisees, tens of thousands of Canadians. At its core are retail businesses, each designed to serve life's pursuits: Canadian Tire, offering products spanning living, playing, fixing, automotive, and seasonal and gardening, as well as products offered under the PartSource and Party City banners; Mark's and L'Equipeur, leading sources for casual and industrial wear; and sports retailers SportChek, Sports Experts, Pro Hockey Life, Hockey Experts and Atmosphere, which offer the best-in-class brands in active wear and sports gear. CTC's banners, brand partners and credit card offerings are unified through its Triangle Rewards loyalty program -- a linchpin of CTC's customer-driven strategy. With close to 10 million registered members, Triangle integrates first party data to deliver valuable rewards and personalized experiences across more than 1,600 retail and gasoline outlets. CTC also operates a retail petroleum business and a financial services business and holds a majority interest in CT REIT, a TSX-listed Canadian real estate investment trust.