It's possible it might have an effect. I guess it all comes down to what their plans are for Toronto and Nike Canada as a whole. I don't blame them for closing though, rent is high in that area and everytime I've been there, aside from release mornings, there's never really that many people in the store.
My main concern right now is lineups. Having Nike on Bloor as a location that often got a relatively good amount of stock for releases, it helped to split up the lines. I know HOH seems to have become the "it" place for releases, but having 2 large places helped to disperse the crowds a bit. More stores around the city getting kicks the better.