Canadian Tire Renews Card Processing Agreement with TSYS
Agreement Extends Current Relationship with TSYS, No. 1 Retail Processor
Columbus, Ga., Dec. 17, 2002 - Canadian Tire Financial Services, a division of Canadian Tire Corporation, Limited, has again chosen TSYS as the exclusive processor for its cards programs. In a seven-year agreement, TSYS, the largest retail processor, will continue to process Canadian Tire's retail, MasterCard and gift card portfolios.
"Canadian Tire is a progressive retailer that trusts TSYS because we have a history of delivering excellent technology and great service," said Richard W. Ussery, Chairman of the Board and CEO." TSYS is a great strategic fit; we allow them to concentrate on their customers, brand and core competencies while we deliver best-in-class payments processing."
"TSYS is a partner that fully understands our business. Their industry-standard system, TS2, has helped enable Canadian Tire to quickly deliver innovative products, services and convenience for customers. TS2 allows us to integrate so many of our processing needs in one solution so that we can increase our speed to market and better serve our customers." Tom Gauld, President, Canadian Tire Financial Services. "We see TSYS as an important complement to the work we're doing to simplify business operations."
Canadian Tire has worked with TSYS since 1998, when Canadian Tire Financial Services converted its private-label and MasterCard accounts from an in-house system to the TS2® processing system by TSYS. Canadian Tire is Canada's most-shopped retailer, with more than 1,000 stores and gas bars across the country. Canadian Tire Associate Stores are located to serve 85 percent of the Canadian population. More than half of Canadians shop at Canadian Tire on a monthly basis, and nearly 80 percent have been in a Canadian Tire store in the past six months.
"Our relationship with Canadian Tire has expanded to virtually every aspect of its payments strategy," said Ussery. "Our focus on servicing the unique needs of Canadian Tire has earned us the opportunity to renew this relationship."
Canada is one of the world's highest transacting card markets. Ninety percent of adult Canadians own a banking card, and the average Canadian carries three different credit cards. Canada has approximately 35,000 ATMS and over 600 credit card issuers for a population of nearly 31 million people. More Canadian households use credit cards than in the United States - 89 percent versus 76 percent.
TSYS has processed card accounts in Canada since 1989 and is the dominant processor. Upon conversion of new business signed in 2002, TSYS' Canadian market share will increase to 33 percent of the overall card market.
International accounts under management at TSYS increased 10 percent in the third quarter, versus one year ago. TSYS has reported 11.6 percent organic growth in accounts for the first nine months of 2002, and 26.3 percent compound annual growth in accounts for 18 years.
In addition to Canadian Tire, TSYS processes for some of the most recognized retail brands, including Sears Roebuck and Co., Sears Canada, Nordstrom, Target and Circuit City.
About Canadian Tire
Canadian Tire Corporation, Limited (TSX: CTR.a, CTR) operates an inter-related network of businesses engaged in retail, financial services and petroleum. Canadian Tire Retail, with more than 450 stores across Canada, is the country's most-shopped retailer, offering a unique mix of products and services through three specialty categories in which the organization is the market leader - automotive, sports and leisure and home products. Canadians also have the opportunity to shop online at www.canadiantire.ca. PartSource is an automotive parts specialty chain with more than 30 stores designed to meet the needs of major purchasers of automotive parts - professional automotive installers and serious do-it-yourselfers. Canadian Tire Financial Services manages related financial products and services for retail and petroleum customers, and also markets other value-added products to our customers. Canadian Tire Petroleum is the country's largest and most productive independent retailer of gasoline, with more than 200 outlets. Mark's Work Wearhouse Ltd. is a specialty retail organization that operates more than 300 stores in Canada. More than 45,000 Canadians work across the Canadian Tire organization from coast-to-coast in the corporation's retail, financial services and petroleum businesses.
About TSYS
TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe. Synovus (NYSE: SNV) owns an 81-percent interest in TSYS. For more information, contact news@tsys.com.
Contacts:
Danita Gibson-Lloyd
TSYS Media Relations
706.649.5578
dglloyd@tsys.com
Leo Berard
TSYS Investor Relations
706.644.6081
leoberard@tsys.com
Jennifer Sexton
Canadian Tire Corporation, Limited
416.480.3690
jsexton@cantire.com