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Canadian Tire CEO Stephen WetmoreKevin Van Paassen/The Globe and Mail

Canadian Tire Corp. Ltd. executives are busily studying every linear foot of business at arch-rival Target Corp. , the daunting U.S. discounter that will shake up the market when it arrives in Canada in early 2013.

As with all competitors, "you study them inside out," chief executive officer Stephen Wetmore said on Tuesday. "So you should know exactly how much linear feet they devote to a product and how much we do, right down to that level – and we do."

Canadian Tire is among an array of retailers preparing for Target's 2013 arrival, introducing new products, sharpening its store presentations, acquiring a new sporting goods retailer – Forzani Group Ltd. and its Sport Chek and other chains – and rolling out a new e-commerce site this week, starting with tires.

In home goods particularly, which is an area of strength at Target, Canadian Tire is racing to improve its lines of both outdoor and indoor lines, ranging from small kitchen appliances to home storage units and gardening and patio products. This year, it added large appliances to its mix.

Canadian Tire's biggest challenge isn't as much the products it carries, but rather telling consumers that it's actually the market leader in many of those home goods categories, just as it's a leader in its cornerstone automotive and tires business, Mr. Wetmore said.

"We have done our research," he told the annual Scotia Capital back-to-school investor conference. "We know where we would like to be, and I think Target – any new competitor coming into the country – increases everybody's game. It will increase our game."

He said in the "indoor living" home business, worth about $6-billion annually in Canada, the retailer is already a leader in 13 of 19 categories, such as cookware, home organization and small appliances. Canadian Tire is working at raising its game by simplifying its flyers, featuring fewer goods but with more realistic pictures of the products, and running more promotions online. It's also showcasing brands such as Cuisinart in separate sections in its stores, with funding from the supplier for the display.

It's re-launching its e-commerce site this week after having ditched it in early 2009, unable at the time to run it efficiently enough. The retailer is starting with tires because it's the most competitive area at the moment, with "tens of millions of dollars" of online sales going to foreign players – to such an extent that it "frightened us," Mr. Wetmore acknowledged.

"Without an employee present in the country they've managed to grab a significant piece of that business, and we just intend to take it back," he said.

He's also looking at adding apparel to Canadian Tire's e-commerce site, through the company's Marks Work Wearhouse division, and by early next year home goods.

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