Qfter struggling to find a realistic path to profitability, Nordstrom has decided to shut down all of its Canadian operations. The Seattle-based luxury department store chain announced its exit from Canada on March 2, 2023, and began liquidation sales on March 18 after receiving court approval. The closure of all 13 Nordstrom and Nordstrom Rack stores across the country marks the end of the retailer's presence in Canada.
Nordstrom first entered the Canadian market in September 2014 with the opening of a store at CF Chinook Centre in Calgary. Over the years, the company expanded its presence with large full-priced locations in Ottawa, Vancouver, and three Toronto locations. Nordstrom Rack, the off-price retail division of Nordstrom, opened its first Canadian store in March 2018 at Vaughan Mills near Toronto. However, weak sales and the impact of the COVID-19 pandemic have led to the decision to close all Canadian stores.
The closure of Nordstrom's Canadian operations is expected to result in pre-tax charges between US$300 million and US$350 million in the first quarter of fiscal 2023 and a loss of approximately US$400 million in net sales. Around 2,500 associates will lose their jobs due to the closures.
As Nordstrom exits the Canadian market, other retailers specializing in high-end fashion, such as Macy's, Dillard's, Neiman Marcus, and Saks, are expected to fill the void left by the luxury department store chain. Competitors like TJX Group's Winners and Marshalls banners in Canada may also benefit from Nordstrom's departure.
The closing of Nordstrom stores in Canada raises questions about the future of big department stores in the country. Some retail analysts believe that Nordstrom's failure in Canada signals bigger problems in the Canadian retail market and suggests that the days of large department stores could be numbered.
As Nordstrom bids farewell to Canada, shoppers will have to turn to other high-end retailers and boutiques for their luxury shopping needs. The closure of all remaining Nordstrom stores in the country is a significant event in the Canadian retail landscape, marking the end of an era for the luxury department store chain.
