Commonwealth_ Canadian Tire Corp. Ltd. has unveiled a bold new strategy aimed at driving growth, which includes a $2 billion investment over the next four years. This initiative, known as the True North plan, was launched on Thursday and marks a significant shift for the Toronto-based retailer, which owns several well-known brands such as SportChek, Party City, Mark’s, and Pro Hockey Life. The strategy comes as Canadian Tire navigates the challenges posed by new U.S. tariffs on Canadian and Chinese goods, implemented earlier this week.
The True North plan will transform Canadian Tire from a holding company model into a more agile and unified organization. By consolidating its systems and data across all its banners, the company aims to break down silos, eliminate redundancies, and streamline back-office processes.
“We will operate more efficiently and go to market more strategically, harnessing our banners and loyalty system to elevate our scale,” said Greg Hicks, Canadian Tire’s CEO, in a statement.
However, the pursuit of operational efficiency will come at a cost. Canadian Tire announced the closure of 17 Atmosphere stores, which it has deemed “uncompetitive.” SportChek locations will integrate 14 of these apparel and outdoor gear stores in phases throughout 2025. Joscelyn Dosanjh, a Canadian Tire spokesperson, did not confirm whether job losses would result from the store closures. However, she mentioned that the company is making efforts to reassign affected employees to other locations as Atmosphere stores in Western Canada shut down over the next four months.
Beyond store closures, the new strategy focuses on optimizing the SportChek portfolio by introducing new concept stores. Canadian Tire also plans to strengthen its loyalty program by adding brand partners that issue Canadian Tire money and increasing the number of Triangle Mastercard holders. Financially, Canadian Tire aims to enhance shareholder value by carrying out up to $400 million in share buybacks, doubling its previous commitment to repurchasing $200 million worth.
A key component of the True North plan is a restructured leadership team. Susan O’Brien, formerly the company’s chief brand and customer officer, will step into the role of chief transformation officer. Meanwhile, TJ Flood, president of the Canadian Tire retail division, will become the company’s chief operating officer. Canadian Tire is also in the process of appointing a chief commercial officer.
RBC Capital Markets analyst Irene Nattel expressed support for the changes, calling them “sensible.” In a note to investors, Nattel remarked, “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 and profitability.”
The announcement follows Canadian Tire’s recent $1.3 billion deal to sell sportswear company Helly Hansen to Kontoor Brands, the owner of Wrangler, Lee, and Rock & Republic.
Amid these strategic moves, Greg Hicks has also been vocal about the impact of U.S. tariffs. He noted that while consumers had begun easing away from the frugality adopted during the economic slowdown, the newly imposed tariffs threaten to reverse that progress.
Canadian Tire currently sources approximately 15 percent of its goods from the U.S. Hicks estimated that the company could potentially shift 25 to 30 percent of these U.S.-sourced products to Canadian suppliers. Through the True North plan, Canadian Tire aims to position itself for long-term growth by fostering a more nimble organization, optimizing its store portfolio, and enhancing customer loyalty, all while mitigating the effects of economic headwinds.
