Canadian Tire to Close 17 Atmosphere Stores in Western Canada

Canadian Tire Corporation has announced plans to close 17 Atmosphere stores in Western Canada over the next four months. This move is part of the company’s True North strategy, a four-year plan focused on efficiency and retail expansion.

Store Closures and Relocations

Of the 17 Atmosphere store closures, 14 locations will relocate inside existing SportChek stores. This shift aims to reduce operational costs and streamline retail offerings. Canadian Tire has not disclosed the exact stores closing but confirmed that some locations in British Columbia and Alberta will be affected.

Impact on Employees and Operations

The company is working to place affected employees in other roles but has not provided specific numbers. The decision is part of Canadian Tire’s goal to eliminate redundancies and improve operational efficiency.

Canadian Tire’s True North Strategy

The True North strategy involves a $2 billion investment over four years to restructure the company. It focuses on:

• Enhancing retail operations by consolidating systems and data across brands.
• Expanding Triangle Rewards with new brand partners and increased member engagement.
• Optimizing the SportChek portfolio with new store concepts and improved customer experience.
• Reducing costs by eliminating back-office inefficiencies and redundant processes.

Financial and Business Adjustments

To support its transformation, the company will:

• Conduct up to $400 million in share buybacks, doubling its previous plan.
• Continue selling non-core assets, including the recent $1.3 billion sale of Helly Hansen.
• Invest in omnichannel retail and AI-driven customer engagement to stay competitive.

The Effect of U.S. Tariffs on Canadian Tire

The decision to close Atmosphere stores also comes as Canadian Tire faces U.S. tariffs on imported goods. The company sources 15% of its products from the U.S. and is working to replace 25-30% of those with Canadian suppliers.

Leadership Changes to Drive Growth

The company has also restructured its executive team to lead this transformation. Key changes include:

• Susan O’Brien as Chief Transformation Officer.
• T.J. Flood as Chief Operating Officer.
• A soon-to-be-appointed Chief Commercial Officer to oversee retail and loyalty expansion.

Looking Ahead

Canadian Tire is betting on a more agile and data-driven approach to retail. The True North strategy positions the company to compete more effectively in a changing market while strengthening customer loyalty.

More…

• https://www.theglobeandmail.com/business/article-canadian-tire-launches-new-2-billion-investment-plan
• https://vancouversun.com/news/canadian-tire-atmosphoere-store-closures-bc
• https://www.newswire.ca/news-releases/canadian-tire-corporation-launches-true-north-transformative-growth-strategy-newly-designed-leadership-team-and-operating-model-will-accelerate-customer-focus-agility-and-scale-877713282.html