I’ve spent the last three days talking with retail analysts across Toronto about what might be the biggest Canadian retail shakeup of the year. Canadian Tire’s decision to sell off Helly Hansen marks a significant strategic pivot for one of our country’s most recognizable retailers.
Canadian Tire Corporation announced yesterday it’s selling its Norwegian-based premium outerwear brand Helly Hansen to Kering, the luxury group behind Gucci and Balenciaga, in a deal valued at approximately $1 billion. The transaction represents a fairly quick turnaround after Canadian Tire acquired the brand for $985 million just six years ago in 2018.
“This isn’t just about cutting losses – it’s about refocusing on core strengths,” explained Melissa Torres, retail strategy director at Bay Street Partners, during our interview at her downtown office. “Canadian Tire’s DNA has always been about serving everyday Canadians with practical retail solutions.“
Walking through the Canadian Tire location at Yonge and Davenport yesterday, I noticed how the Helly Hansen display seemed almost disconnected from the store’s primary offerings. The premium positioning never quite aligned with the retailer’s everyday value proposition that Toronto shoppers have come to expect.
The sale comes as part of Canadian Tire’s broader “Better Connected” strategic plan, aimed at streamlining operations and focusing on its core Canadian retail business. Financial documents show the company has faced headwinds recently, with comparable sales declining 1.8% in the most recent quarter.
Toronto-based retail consultant Jordan Patel told me, “The reality is that running an international premium apparel brand requires completely different operational expertise than managing a Canadian hardware and automotive business. The synergies they hoped for never fully materialized.”
Canadian Tire CFO Gregory Craig highlighted in yesterday’s press release that the sale will significantly strengthen the company’s balance sheet, providing financial flexibility to invest in their Canadian retail operations and digital transformation efforts.
For shoppers wondering what this means for Helly Hansen products in Canadian Tire stores, company representatives confirmed to me that Canadian Tire will maintain a wholesale relationship with Helly Hansen. This means you’ll still find those distinctive red and white logos on jackets and gear at your local store.
The deal also includes Canadian Tire keeping distribution rights for the brand in Canada, which should provide continuity for loyal Helly Hansen customers who’ve come to rely on the Norwegian brand’s quality in our often unforgiving Toronto winters.
I spoke with several customers outside the Canadian Tire at Leslie and Lakeshore about the news. Longtime shopper Diane Mendes, who was picking up gardening supplies, shared: “I never quite understood why Canadian Tire bought a fancy European clothing brand in the first place. I come here for practical things, not designer outerwear.”
Retail analysts note that Canadian Tire’s original acquisition strategy aimed to leverage Helly Hansen’s international presence and premium positioning. However, the challenges of integrating such different business models proved more difficult than anticipated.
Lisa Wu, professor of retail management at Ryerson University, explained during our coffee meeting near campus: “What we’re seeing is a natural correction. Canadian companies sometimes expand internationally without fully appreciating the complexities of global brand management. Returning to core competencies is often the wiser long-term strategy.”
The timing of the sale is particularly interesting given current economic pressures. With inflation and interest rates affecting consumer spending, Canadian Tire appears to be battening down the hatches to weather potential retail storms ahead.
For employees at Canadian Tire’s headquarters on Yonge Street, the move signals a clearer focus on what the company does best. As one middle manager told me off the record, “There’s been a sense that we’ve been trying to be too many things to too many people. Getting back to basics feels right.”
Canadian Tire’s stock responded positively to the announcement, with shares rising 3.2% on the Toronto Stock Exchange yesterday.
The transaction is expected to close in the first half of 2025, subject to regulatory approvals and customary closing conditions.
As I finished writing this piece from my favorite cafe on Queen Street, I noticed a young professional in a Helly Hansen jacket walking in. When I mentioned the news about the brand changing hands, he shrugged. “As long as the quality stays the same, I don’t really care who owns it.”
Perhaps that customer reaction best summarizes what’s at stake: Canadian Tire is betting that refocusing on its core identity will strengthen its relationship with Canadian consumers, while Helly Hansen will continue its premium journey under new ownership better aligned with its luxury positioning.
In Toronto’s competitive retail landscape, sometimes knowing exactly who you are is the best business strategy of all.
