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  "docSlug": "207d3ac66ddd",
  "documentTitle": "Canadian Tire Corporation (CTC.A)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-12-05 00:00:00",
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  "pageNumber": 58,
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  "density": "overcrowded",
  "nDataPoints": 22,
  "notes": "Uses a combination of data tables, management quotes, and activist commentary to build a case for channel stuffing.",
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      "kind": "callout",
      "text": "Q1 and Q2 2019 days inventory were higher than 2018. The slowdown in CTC's ability to move inventory to its dealers is a sign of weakness in its retail channel.",
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      "kind": "callout",
      "text": "\"Stack it high and watch it fly\" – Canadian Tire Dealer, when asked about high levels of inventory",
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      "kind": "callout",
      "text": "Based on our research, Dealers are at Canadian Tire's mercy. CTC has complete control of product pricing and limits the amount of equity Dealers are able to pull out of their business.",
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      "kind": "metric",
      "text": "Organic CTC Retail Revenue Growth: 4.3%",
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      "kind": "paragraph",
      "text": "We observe CTC retail revenue growth has outpaced point of sale (POS) retail sales growth through dealer channels. Based on the gap, we believe Canadian Tire Dealers are unable to quickly turnover inventory to end market customers.",
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      "kind": "quote",
      "text": "\"We had strong revenue performance in the quarter and while we were left with some excess inventory versus last year, the vast majority of that had been shipped to dealers in Q3.\"",
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      "kind": "quote",
      "text": "\"Stack it high and watch it fly\" — Canadian Tire Dealer. \"We had strong revenue performance in the quarter and while we were left with some excess inventory versus last year, the vast majority of that has been shipped to dealers in Q3.\" — Allan Angus MacDonald, EVP of Retail, Q2 2019 Call, August 8, 2019.",
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      "kind": "source-note",
      "text": "(1) Revenue reported for Canadian Tire, SportChek, Mark's, Petroleum, and Helly Hansen includes inter-segment revenue. (2) Retail sales refers to the Point of Sale (\"POS\") value of all goods and services sold to retail customers.",
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      "kind": "table",
      "text": "Table showing Organic CTC Retail Revenue Growth vs Retail Sales POS Growth from Q1 2017 to Q3 2019",
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      "kind": "title",
      "text": "Evidence Of Rising Inventory Levels In Dealer Channels",
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      "evidence": "Framing CTC as a villain forcing inventory on dealers",
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