In a significant retail move, Canadian Tire Corporation has announced the closure of 17 standalone Atmosphere stores across Canada. This decision comes as part of the company’s four-year transformation strategy aimed at streamlining operations and strengthening its connection with customers. The closures will affect Atmosphere stores in key regions, with 14 of them being relocated into existing SportChek locations throughout British Columbia, Alberta, and Saskatchewan over the course of 2025.
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The Store Closures: What You Need to Know
The Atmosphere chain, known for its outdoor gear, is set to downsize as Canadian Tire shifts its retail strategy. The company has opted to consolidate 17 standalone Atmosphere stores, many of which have struggled to remain competitive in their current standalone formats. Among the affected locations are stores in B.C., Alberta, and Saskatchewan, which will transition into SportChek locations.
Key Details of the Closures:
- 17 Atmosphere locations across Canada will close.
- 14 of these stores will be relocated into SportChek locations, with phases planned throughout 2025.
- The move will affect key regions including British Columbia, Alberta, and Saskatchewan.
Atmosphere has already been present inside some SportChek stores, particularly in Ontario, including Sherway Gardens and Winston Churchill Boulevard in Oakville. Previously, Eaton Centre, Vaughan, and Don Mills locations were also shut down in recent years.
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Impact on Employees and the Canadian Tire Growth Strategy
While the exact number of job cuts has not been disclosed, Canadian Tire has assured the public that efforts will be made to relocate employees affected by the closures to other stores within the company. Joscelyn Dosanjh, a spokesperson for Canadian Tire, stated that the company is working to place these workers at other locations as the closures in Western Canada unfold over the next several months.
This move is part of a broader plan by Canadian Tire to improve its operations through a strategy known as “True North”. Launched to create a unified operating model across its diverse retail banners, including Canadian Tire, SportChek, and Mark’s, the strategy focuses on data-driven customer relationships, eliminating redundant back-office processes, and streamlining procurement and merchandising.
The company has already consolidated major websites onto a single digital platform to further this strategy, which is expected to enhance customer engagement and operational efficiency.
The Strategy Behind the Closures
This restructuring effort comes on the heels of significant corporate decisions, including the sale of Helly Hansen, a well-known sportswear company, to Kontoor Brands in a deal valued at nearly $1.3 billion. The sale and the restructuring of the Atmosphere brand signal Canadian Tire’s pivot towards a more streamlined and efficient retail approach.
According to Irene Nattel, an analyst with RBC Capital Markets, the changes being implemented by Canadian Tire are “sensible” and could lead to stronger growth and profitability. She noted that if properly executed, the company’s enhanced approach to procurement and merchandising would likely drive better revenue performance and build a more direct connection with Canadian Tire’s customer base.
Conclusion: What This Means for Canadian Shoppers
While the closures may come as a disappointment for some shoppers, they mark a critical step in Canadian Tire’s effort to modernize its business and provide a more cohesive shopping experience across its SportChek, Mark’s, and Canadian Tire stores. As Canadian Tire continues to refine its True North strategy, it aims to simplify its operations, improve its product offerings, and strengthen its connections with customers through innovative technology and a more unified approach to retail.
The closures, part of a broader strategy to focus on profitable and efficient operations, reflect the ongoing changes in the Canadian retail landscape and the company’s efforts to adapt to new consumer needs in a rapidly evolving market.
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