Major Retailer’s Struggles Flash Warning Signs for Canadian Economy
- Canadian Tire plans to cut hundreds of jobs as sales turn cold
- Consumer patterns are weak in Ontario and BC, company says
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Big box retailer Canadian Tire Corp. will cut 3% of staff and eliminate most vacant roles as consumers tighten spending on non-essential goods, especially in regions where housing costs are highest.
Comparable sales slipped 1.6% in the third quarter, the Toronto-based company said Thursday. Spending was particularly soft in British Columbia and Ontario, the company said, two provinces where homes are most expensive, as residents put more of their take-home pay into rents or mortgages after interest rates rose.