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National Sports stores all closing despite parent-company Canadian Tire posting 'phenomenal' Q4 earnings
February 18, 2021
Canadian Tire Corp. Ltd. says it's closing all its National Sports stores to reduce overlap in the company's sporting goods assortment after an internal evaluation.
All 18 of the retail stores across southern Ontario will be closing, Gregory Craig, the retailer's chief financial officer, told investors on Thursday.
"This has been a difficult decision, particularly due to its impact on people," he said during a conference call. "We're making every effort to place affected employees within our family of companies."
The company, which operates multiple retailers including Canadian Tire, Mark's, SportChek, Atmosphere, Sports Experts and Pro Hockey Life, made the announcement as it reported that its fourth-quarter profit and revenue both rose significantly compared with a year ago.
National Sports, which carries sportswear, shoes and gear, was launched in 1968 as National Gym Clothing Ltd., according to its website.
Closing National Sports is part of the company's strategy to increase operational efficiencies and focus on core assets, said Greg Hicks, president and CEO of Canadian Tire Corp.
National Sports stores all closing despite parent-company Canadian Tire posting 'phenomenal' Q4 earnings
Canadian Tire Corp. Ltd. says it's closing all its National Sports stores to reduce overlap in the company's sporting goods assortment after an internal evaluation.toronto.ctvnews.ca
I have to say, there were choices in sports clothing and footwear I could find at National that I could not find at other CT owned spaces.
This is an illustration of the problem of permitting companies that are substantially unrelated to buy one another for the sake of growth.
Eventually, someone comes along and say 'Why did we do that'? The decision to go with closure when the business was in fact sound, rather than choosing to sell it off or spin it off appears to be me, to be one
of competition prevention, rather than one of necessity or prudence.
National's problems are largely limited to being a forgotten banner at the edge of a corporate behemoth; and a succession of bosses who lacked vision for what it could be.
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