On Thursday, Nordstrom announced the closing of all its Canada stores.
The Seattle-based retail giant currently has six Nordstrom stores and seven Nordstrom Rack stores in Canada. According to the retailer, it will close all 13 stores as it winds down operations in the country. There are 2,500 workers at the locations. Nordstrom’s e-commerce operations in Canada have stopped operating on March 2 and the in-store wind down is expected to be completed by June.
The Nordstrom and Nordstrom Rack stores in Canada include:
- Calgary: The Chinook Centre and Deerfoot Meadows
- Edmonton: South Edmonton Common
- Langley, British Columbia: Willowbrook Mall
- Ottawa: Train Yards and The Rideau Centre
- Toronto-area: Heartland Town Centre, Sherway Gardens, The Toronto Eaton Centre, Yorkdale Shopping Centre, One Bloor and Vaughan Mills
- Vancouver: Pacific Centre
Nordstrom first announced plans to expand to Canada in 2012 and opened its first store in Calgary at CF Chinook Centre in September 2014.
Nordstrom chief executive Erik Nordstrom stated that the company entered Canada in 2014 with a plan to build and sustain a long-term business.
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“Despite our team’s best efforts, including multiple initiatives to improve our outcomes, our Canadian business has not been profitable. The impact from Covid drove further losses, with no realistic path to sustainable profitability,” Nordstrom said.
Nordstrom’s move will result in a decline of about $400 million in net sales for the fiscal year. Following the announcement of the Canada closures, the retailer posted a deeper-than-expected decline in sales in its latest quarter. Net income rose to $119 million, compared with $104 million from a year earlier.
Nordstrom expects to report approximately $300 million to $350 million of pretax charges related to the exit in the first quarter of fiscal 2023, the three months that end in April.
Pete Nordstrom, president and chief brand officer, said that the incremental markdowns impacted the margins, but the company is better positioned for a stronger 2023.
“Our actions have given us increased flexibility to react more quickly to changing customer demand and provide the newness and fashion our customers love. We want to thank our teams for all their hard work helping our customers feel good and look their best,” Nordstrom stated.
