Shifting Landscape: A Turbulent Year for Canadian Outdoor Retailers

Canada's outdoor retail sector is navigating a period of significant change in 2025, marked by the closure of a long-standing Alberta institution, a strategic consolidation by a national giant, and the return of a beloved brand to Canadian ownership.

The year has presented both challenges and opportunities for retailers catering to backcountry enthusiasts across the country. Economic pressures and evolving consumer habits continue to reshape the market, leading to notable shifts among key players.

Breathe Outdoors Winds Down After Six Decades

In a move that signals the ongoing difficulties faced by some independent retailers, Breathe Outdoors, formerly known to many Albertans as Camper's Village, announced it would be winding down its operations. The company, which has a history stretching back to 1921, cited persistent challenges within both the broader retail environment and the outdoor industry specifically as the driving forces behind the difficult decision to cease operations.

The closure is being phased throughout the year, with the South Edmonton location having closed on April 30th, the West Edmonton store scheduled to close its doors on May 31st, and the Calgary location expected to follow suit in September 2025. The company's online store is also anticipated to conclude sales by mid-June. The wind-down impacts 73 employees across the Alberta locations.

Canadian Tire Consolidates Atmosphere Stores

Adding to the shifts in the market, Canadian Tire Corporation is undertaking a significant restructuring of its SportChek and Atmosphere banners. As part of its new four-year "True North" growth strategy, the company is closing 17 standalone Atmosphere stores. The plan involves relocating 14 of these locations, integrating them into larger SportChek stores to create combined retail footprints.

This move is aimed at optimizing the SportChek portfolio and streamlining operations. While involving initial restructuring costs, Canadian Tire anticipates that this consolidation will lead to increased efficiencies and contribute to long-term operating expense savings as part of its broader strategy to enhance profitability and competitiveness in the evolving retail landscape.

MEC Returns to Canadian Ownership

Amidst the closures and consolidations, a positive development emerged for one of Canada's most recognizable outdoor brands. Mountain Equipment Company (MEC) was recently acquired by a group of private Canadian investors led by textile entrepreneur Tim Gu. This acquisition marks a return to majority Canadian ownership for MEC, which had been under the ownership of a U.S. private equity firm since 2020.

Tim Gu expressed his enthusiasm for the acquisition, stating, "MEC represents the best of Canadian spirit — adventure, resilience, and community. As a lifelong believer in Canadian manufacturing and innovation, I’m proud to join MEC’s journey. Together, we’ll strengthen its foundation, expand its reach, and ensure that MEC remains an essential part of Canada’s outdoor culture for generations to come.” The new ownership group also includes MEC's current Chief Executive Officer, Peter Hlynsky, and Chief Merchandising Officer Chris Speyer, signalling a commitment to the brand's future direction. The new owners have indicated plans to reinvest in the business and explore bringing some MEC Label manufacturing back to Canada, a move that resonates with consumers increasingly interested in domestically produced goods.

The activity among these major players underscores the dynamic nature of the Canadian outdoor retail market this year. While some businesses face headwinds requiring difficult decisions like closures and restructuring, others are finding opportunities for renewed investment and a focus on strengthening their connection with Canadian consumers and values. The sector continues to adapt to economic conditions and changing consumer preferences, setting the stage for further evolution in the years ahead.