Canadian Tire announces layoffs as sales plummet
Canadian Tire, one of Canada’s most recognizable homegrown brands that has been around for more than a century, has just announced that it’s laying off a portion of its employees as a result of a decline in sales over recent months.
The company’s third quarter 2023 results, released Thursday, note that sales across its banners are down 1.6% compared to the same time last year “as consumers continue to shift to essentials” in today’s economic climate.
Despite the company’s loyal customer base and vast product offerings that fit into the essentials category, this “softening consumer demand” means that it will be streamlining a few things to compensate for this loss — including its workforce.
A total of 3% of staff are being laid off, and most vacant roles are nixed, which should save the chain some $50 million over time. But, as the CBC reports, the cuts are only at the corporate level, impacting some 200 people.
As per these latest financials, the hardest-hit among Canadian Tire-owned stores has been SportChek, which saw a 7.4% reduction in sales from Q3 2022 to Q3 2023. Canadian Tire sales, meanwhile, fell 0.6%, while Mark’s sales increased by 0.2%.
The downward trend was especially noticeable in Ontario and BC, the update states, which are, of course, the two provinces notorious for being the most pricey to live in, especially lately.
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The brand is headquartered in midtown Toronto near Yonge and Eglinton, though it also has corporate offices in Vancouver, Calgary, Montreal, Winnipeg, and Oakville.
Along with being a boon for dads nationwide, it is known for its stock of holiday decor, its house-brand snacks and assorted goods led by the hilarious Frank mascot, and for having basically any appliance or gadget one could need for their home.
It is worth noting that Canadian Tire’s 1.6% figure represents the drop in consolidated comparable sales and excludes gas sales — and that some experts are considering it an indication of the state of the Canadian economy at large.