Canadian Tire Corporation is making a strategic pivot as part of its ambitious Truth North strategy, which will result in the closure of 17 Atmosphere stores across Western Canada in the coming months. These closures, a part of the company’s larger restructuring initiative, are aimed at tackling the challenges posed by U.S. tariffs and positioning the company for long-term growth.
Table of Contents
Strategic Shift: Closing Atmosphere Locations to Adapt to Market Pressures
As part of its ongoing transformation, Canadian Tire has decided to close 17 underperforming Atmosphere locations in Western Canada. While the company has not publicly disclosed the specific stores affected, it confirmed that a significant portion of these closures will happen in British Columbia (B.C.) and Alberta. The closures come as Canadian Tire works to adapt to the evolving retail landscape, especially in light of rising costs and the impact of tariffs on goods imported from the U.S.
A critical component of Canadian Tire’s Truth North strategy is an investment of $2 billion over the next four years. This investment is designed to drive growth and efficiency across the company’s diverse portfolio of brands, including SportChek, Mark’s, Pro Hockey Life, and Party City. The restructuring plan aims to streamline operations, reduce redundancy, and create a more agile organizational structure.
The Impact of U.S. Tariffs on Canadian Tire’s Bottom Line
CEO Greg Hicks of Canadian Tire has emphasized that the company’s shift to a more streamlined business model is essential for staying competitive, especially as U.S. tariffs put pressure on prices. With Canadian Tire purchasing approximately 15% of its products from the U.S., the company is feeling the financial pinch of higher import costs. In response, Canadian Tire aims to identify Canadian suppliers for up to 30% of its imported goods, helping reduce dependency on the U.S. and lessen the impact of tariff-related costs.
The decision to close 17 Atmosphere stores is part of a broader strategy to eliminate inefficiencies within the company. Hicks has been vocal about the need for Canadian Tire to become more agile, positioning itself to compete more effectively in an increasingly competitive market.
Atmosphere Locations to Be Consolidated into SportChek Stores
Although 17 Atmosphere stores are set to close, Canadian Tire has a plan to integrate much of the remaining Atmosphere presence into its SportChek locations. Fourteen of the closing Atmosphere stores will be relocated into existing SportChek stores in a phased approach. This consolidation is expected to streamline operations and reduce costs, ensuring the company can still reach its customers while cutting down on unnecessary overhead.
Currently, there are 10 Atmosphere locations in B.C., including stores in West Vancouver, Coquitlam, Surrey, Langley, Nanaimo, and Victoria. Alberta has 10 additional Atmosphere stores, including locations in Calgary, Edmonton, Red Deer, and Banff. While the company has not specified which of these stores will be affected, it is clear that the closures will have a significant impact on the company’s presence in Western Canada.
Focusing on Long-Term Growth: Restructuring and Leadership Changes
Alongside the closures, Canadian Tire is undergoing a series of leadership changes to guide its transformation. Susan O’Brien, the company’s Chief Brand and Customer Officer, will step into the role of Chief Transformation Officer, overseeing the execution of the Truth North strategy. Additionally, T.J. Flood, the president of Canadian Tire’s retail division, will assume the role of Chief Operating Officer (COO).
These leadership shifts are expected to help drive the company toward its goals of operational efficiency and better alignment with consumer needs. Canadian Tire’s approach to enhancing its retail presence also includes revamping its SportChek portfolio by introducing new concept stores and expanding its loyalty program. The company plans to partner with more brands that issue Canadian Tire Money and increase the number of Triangle Mastercard holders.
CRA Benefit Cheque for March 2025: Payment Dates, Eligibility, and How to Maximize Your Payouts
Will Canada Issue Another Grocery Rebate? Experts Share Their Insights!
The Path Forward: Share Buybacks and the Future of Canadian Tire
In addition to its restructuring efforts, Canadian Tire is also planning to buy back up to $400 million worth of shares, doubling its previously announced share repurchase program. This move is expected to bolster the company’s financial position and provide more flexibility as it navigates a rapidly changing retail environment.
This restructuring comes on the heels of Canadian Tire’s recent sale of Helly Hansen, a well-known sportswear brand, to Kontoor Brands for approximately $1.3 billion. The sale signals Canadian Tire’s intent to focus on its core operations and streamline its portfolio, enabling the company to invest in growth and innovation.
Conclusion: Canadian Tire’s Resilience Amid Economic Challenges
Canadian Tire’s decision to close 17 Atmosphere stores is a response to several economic challenges, including rising tariffs and shifting consumer behavior. However, the company is positioning itself for future success with its Truth North strategy, which is designed to make it more agile and efficient. Through store relocations, leadership changes, and investments in loyalty programs, Canadian Tire is focused on staying ahead of the competition and driving long-term growth.
Despite the closures, Canadian Tire remains a dominant force in the Canadian retail landscape. With a more streamlined and efficient model, the company aims to continue thriving and delivering value to both customers and shareholders in the years ahead.