Canadian Tire to Implement Changes for Growth, Including Closure of Select Atmosphere Stores
Canadian Tire Corp. Ltd. is unveiling a new strategy involving a $2 billion investment over the next four years to restructure the company for growth, albeit at the cost of closing some stores.
The True North plan, launched on Thursday, aims to mark a new chapter for the Toronto-based retailer, which also owns SportChek, Party City, Mark’s, and Pro Hockey Life, as it navigates the impact of tariffs imposed by the U.S. on Canadian and Chinese goods this week.
Canadian Tire has outlined that the new plan will transition the business from its current holding company model to a more agile organization by consolidating systems and data across its various banners.
Although the company declined an interview request, it described the shift as a means to eliminate silos, redundancies, and costly back-office processes.
Canadian Tire CEO Greg Hicks asserted in a statement, “We will operate more efficiently and go to market more strategically, leveraging our banners and loyalty system to enhance our scale.”
As part of the quest for operational efficiency, 17 Atmosphere stores deemed “uncompetitive” will be closed. Fourteen of these stores, which focus on apparel and outdoor gear, will be relocated to SportChek stores gradually by 2025.
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Canadian Tire spokesperson Joscelyn Dosanjh did not confirm any job cuts resulting from the closures. However, the company aims to relocate affected employees as stores in Western Canada shut down over the next four months.
Moreover, in conjunction with the closures, Canadian Tire’s new strategy involves optimizing its SportChek portfolio with innovative concept stores and expanding its loyalty program by partnering with brands that issue Canadian Tire money and aiming to attract more Triangle Mastercard holders.
The company will also conduct $400 million in share buybacks, doubling its initial plans to repurchase $200 million worth of shares.
Guiding every facet of the strategy will be a revamped leadership team. Susan O’Brien, previously the chief brand and customer officer, will now serve as the chief transformation officer, while TJ Flood, the former president of the Canadian Tire retail division, will take on the role of chief operating officer.
A search will kick off to fill Flood’s prior position.
These changes follow Canadian Tire Corp.’s recent sale of sportswear company Helly Hansen for nearly $1.3 billion to Kontoor Brands, which owns Wrangler, Lee, and Rock & Republic.
Hicks has also expressed concerns about the tariff impacts, noting that the progress made in consumer spending post-economic slowdown was likely dampened when the U.S. initiated tariff threats.
Canadian Tire sources around 15 percent of its goods from the U.S. and estimates that it could potentially find Canadian suppliers for 25 to 30 percent of the items currently sourced from the U.S.
