Canadian Tire Corp. Ltd. (CTC) has announced significant changes as part of its new restructuring strategy aimed at fostering growth and improving efficiency amid external challenges. On March 6, 2025, CTC unveiled its "True North" initiative, which will involve investing approximately $2 billion over the next four years. This strategy aims to modernize the company’s operations and directly address the impacts of U.S. tariffs affecting Canadian goods.
The plan reveals CTC's intent to create a more agile and efficient organization by shifting from the existing holding company model to one focused on customer-driven insights. President and CEO Greg Hicks stated, “We will operate more efficiently and go to market more strategically, leveraging our banners and loyalty system to maximize our scale.” This transformation arises from extensive analyses of the retailer's internal inefficiencies, which had been costing the company valuable resources.
Part of the strategy will involve the closure of 17 Atmosphere stores, which CTC has labeled as “uncompetitive.” These closures will particularly affect locations across British Columbia, Alberta, and Saskatchewan, with 14 of these stores being relocated within existing SportChek outlets. The process of relocating and rebranding stores is set to occur throughout 2025.
While the closings raise concerns about employee displacement, CTC has reassured staff affected by these changes. Joscelyn Dosanjh, Canadian Tire spokesperson, emphasized efforts to place impacted employees at other company locations as they transition through the closures.
Beyond store closures, CTC plans to expand its Triangle Rewards program by adding brand partners who will also contribute to incentives, boosting customer engagement and satisfaction. With the aim to acquire even more Triangle Mastercard holders, CTC is also eyeing opportunities to double share buybacks to $400 million to strengthen shareholder return.
Greg Hicks has also mentioned how tariffs imposed by the U.S. had created uncertainties for retailers, leading to weakening consumer sentiments whose impacts are still being assessed. “We have begun to put capital behind our conviction and expect to invest more than $2 billion over the next four years,” Hicks said. This investment underlines CTC's commitment to navigate through the adverse market terrain effectively, emphasizing customer loyalty and experience.
Industry analysts have responded positively to CTC's planned changes. RBC Capital Markets analyst Irene Nattel noted, “If properly executed, the result should be closer connection to (Canadian Tire’s) customer base and a more effective approach to procurement and merchandising, driving stronger revenue growth/profitability.” Market performance could initiate clearer strategies to strengthen revenue streams, placing CTC on favorable grounds for its customers.
Compounding these changes, Canadian Tire also announced its decision to sell the Helly Hansen brand to Kontoor Brands for $1.3 billion earlier this year, which reflects the company's strategy of streamlining operations and refocusing on their core retail businesses.
The reorganization of CTC's leadership team demonstrates its commitment to adaptability and innovation within its retail operations. Susan O’Brien will serve as the new Chief Transformation Officer, leading the companies’ shift to increasingly data-driven strategies. Following her, TJ Flood has been appointed Chief Operating Officer, who will oversee the centralization of operations across Canadian Tire and its other brands, including SportChek.
Analysts and investors will be keeping a close watch on CTC's performance, especially with the company’s focus on leveraging advanced data analytics and artificial intelligence to refine and strengthen their customer relationships across all banners. Hicks expressed optimism about the potential brought by the growing Triangle Rewards membership and its corresponding sales.
Canadian Tire's transformative strategy not only aims for operational efficiency but positions itself to dynamically align with consumer needs and market expectations. With significant investments planned alongside leadership restructuring, CTC seeks to redefine retailing on its terms, ensuring sustainable growth and improved financial performance as it moves forward.