Canadian Tire Corp. reinstates former CEO

Canadian Tire Corp. abruptly reinstated former chief executive Stephen Wetmore to the CEO role on Wednesday, removing Michael Medline from the position as the board expressed a desire to focus on long-term goals as traditional retailers grapple with an ever-digital future.

Though the retailer’s financial results were strong under Medline, a 15-year company veteran, the board seemed dissatisfied with the executive’s big-picture vision for the company, in particular its digital initiatives.

“The board has taken a unanimous decision to change the leadership of the company at a time of unprecedented change in the retail industry,” said a statement from Maureen Sabia, chairman of the board, adding Wetmore is “uniquely qualified” to take up the top role again.

“While our short-term priorities are delivering results, the board’s responsibility is the long-term success of Canadian Tire.”

Wetmore’s role, she added, “is neither an interim, nor a short-term, appointment.”

Shares fell four per cent in afternoon trading on the news.

Alex Arifuzzaman, partner in retail real estate specialist InterStratics Consultants, said the board’s decision was likely influenced by the progress of Canadian Tire’s online sales strategy, in which customers buy goods online and pick them up in the store. Traditional retailers have been trying to cash in on the digital successes of giants like Amazon while maintaining the viability — and overhead costs — of their big stores.

“The whole vision of the future of retail is changing,” he said.

Peter Sklar of BMO Capital Markets said the underlying causes behind Canadian Tire’s move relates to growing pressure from larger strategic issues the company is facing.