Canadian Tire Corp. Ltd. will shut down 17 Atmosphere stores across Western Canada in the coming months as part of its restructuring strategy, the company announced Thursday. The closures, which include locations in British Columbia, are part of its Truth North plan, a four-year, $2 billion initiative aimed at streamlining operations and improving efficiency.
The company, which also owns SportChek, Mark’s, Party City, and Pro Hockey Life, is shifting away from its holding company model to consolidate systems and data across its brands.
“We will operate more efficiently and go to market more strategically, harnessing our banners and loyalty system to elevate our scale,” said Canadian Tire CEO Greg Hicks in a statement.
Of the 17 Atmosphere locations set to close, 14 will be relocated within existing SportChek stores in a phased transition. However, the company has not specified which locations will be affected. British Columbia currently has 10 Atmosphere stores, including in West Vancouver, Coquitlam, Surrey, Langley, Nanaimo, Victoria, Kamloops, Kelowna, and Prince George, while Alberta has multiple locations in Calgary, Edmonton, Red Deer, and Banff.
Canadian Tire is working to place affected employees in new roles but has not disclosed how many workers will be impacted. The company declined an interview, stating the move is intended to reduce redundancies and back-office costs.
Beyond store closures, the company’s strategy includes optimizing SportChek’s retail footprint, expanding its loyalty program by adding brand partners, and increasing its Triangle Mastercard user base. It also plans to carry out up to $400 million in share buybacks, doubling its previous target of $200 million.
As part of the transition, the leadership team is being restructured. Susan O’Brien, previously the chief brand and customer officer, will take on the role of chief transformation officer, while T.J. Flood, president of Canadian Tire’s retail division, will become COO. The company is also searching for a new chief commercial officer.
RBC Capital Markets analyst Irene Nattel described the changes as “sensible,” stating in a note to investors, “If properly executed, the result should be closer connection to (Canadian Tire’s) customer base and a more effective approach to procurement and merchandising, in turn driving stronger revenue growth/profitability.”
The announcement comes just weeks after Canadian Tire signed a nearly $1.3-billion deal to sell its Helly Hansen brand to Kontoor Brands, the owner of Wrangler and Lee.
Hicks has recently warned that U.S. tariffs could impact the company’s financial outlook, stating that consumer spending had started recovering but could be “substantially erased” due to tariff pressures. Canadian Tire currently sources about 15% of its products from the U.S. and is exploring shifting 25-30% of those purchases to Canadian suppliers.