Canadian Tire’s $2B Restructuring and Store Closures

Canadian Tire’s $2B Restructuring and Store Closures

Why is Canadian Tire Restructuring?

Canadian Tire Corp. Ltd. is making bold changes with its new True North strategy, a $2 billion plan over four years aimed at driving growth. The restructuring will streamline operations, eliminate redundancies, and integrate systems across all its brands, including SportChek, Party City, Mark’s, and Pro Hockey Life. However, this shift also means closing some stores, particularly within the Atmosphere chain.

As part of its push for efficiency, Canadian Tire will shut down 17 Atmosphere stores deemed “uncompetitive.” Of these, 14 locations will be relocated into existing SportChek stores in phases throughout 2025. The affected stores are primarily in Western Canada and will be closing over the next four months.

Will Employees Lose Their Jobs?

While Canadian Tire has not confirmed whether job cuts will occur, spokesperson Joscelyn Dosanjh stated that the company is making efforts to place impacted employees in other locations. The extent of job displacement remains unclear.

The shift to a more agile organization aims to improve customer experience by removing inefficiencies and leveraging the company’s loyalty program. Canadian Tire plans to expand its Triangle Rewards program, adding brand partners and encouraging more customers to sign up for the Triangle Mastercard.

Beyond store closures, Canadian Tire is optimizing its SportChek portfolio by introducing new concept stores and doubling its share buybacks to $400 million. Additionally, a leadership shakeup is in progress:

  • Susan O’Brien moves from Chief Brand and Customer Officer to Chief Transformation Officer
  • TJ Flood, President of Canadian Tire Retail, becomes Chief Operating Officer
  • A new Chief Commercial Officer will be appointed after a search process

How Does This Fit into Canadian Tire’s Bigger Picture?

The announcement follows Canadian Tire’s $1.3 billion sale of Helly Hansen to Kontoor Brands, which owns Wrangler and Lee. CEO Greg Hicks has also raised concerns over new U.S. tariffs on Canadian and Chinese goods, which could impact pricing and supply chains. With about 15% of its products sourced from the U.S., Canadian Tire is looking to shift up to 30% of those purchases to Canadian suppliers.

Severance Pay for Affected Canadian Tire Employees

For Canadian Tire employees impacted by restructuring, severance pay is a legal right for those not part of a union. The amount depends on various factors and can reach up to 24 months of pay. In Ontario, mass layoffs affecting 50 or more employees may entitle workers to enhanced severance packages. If employees do not receive their full severance, they have the right to seek compensation.

At Whitten & Lublin, we understand the stress of job loss and the importance of receiving fair severance. Our experienced employment lawyers are here to guide you through your legal options and ensure you get the compensation you deserve. If you were recently laid off, contact us today through our online portal or call (416) 640-2667 for a consultation.

 

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