Nordstrom is closing ALL of its 13 Canadian stores and ending operations in the country after attempting to go international in 2014 – but will open 20 more stores in the US.
- The retail giant is closing its 13 stores in Canada, which opened in 2014
- “Despite our best efforts, we do not see a realistic path to profitability for the Canadian company,” said CEO Erik Nordstrom.
- The company also shared its plans to open 20 new stores in the US in fiscal year 2023
Nordstrom is closing all of its 13 stores in Canada and terminating operations in the country bordering the US to the south, while opening 20 new US locations in 2023.
“This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core US operations,” said Erik Nordstrom, CEO of the company.
“As we enter fiscal 2023, we are focused on improving the customer experience, improving Nordstrom Rack performance, increasing inventory productivity and continuing our supply chain optimization initiatives,” he continued.
“We remain confident in the strength of our brands and in our ability to drive profitable growth and deliver long-term value to our shareholders.”
A Nordstrom store in the Toronto Eaton Center – the company is closing its entire Canadian facility this year
In addition to closing its 13 Canadian stores, Nordstrom will open 20 new stores in the US this year
The company calls the decision to close its 13 Canadian stores a “decisive action” taken to “get our inventory right sized at the start of the new year, positioning us for greater flexibility amid ongoing macroeconomic uncertainty’.
Nordstrom Canada operates six Nordstrom stores and seven Nordstrom Rack stores, as well as the Canadian Nordstrom website. The holistic company employs approximately 2,500 people.
The decision to close the Canadian operations, which the company began in 2014, comes as Erik Nordstrom said his family’s family business has made it a habit to “regularly review (review) every aspect of our business to make sure to be ready for success’.
“We entered Canada in 2014 with a plan to build and sustain a long-term business there,” he said.
Despite our best efforts, we do not see a realistic path to profitability for the Canadian company.
“We would like to thank our team for their performance and dedication in serving customers in Canada. This decision will simplify our structure, strengthen our focus on our growth and profitability goals and position us to create more value for our shareholders,” he concluded.
According to the company’s report, there are currently 358 operating Nordstrom stores in North America, 13 of which are in Canada and will close.
However, the company shared plans to open 20 new stores in the US by 2023, one of which is a move. The company opened three new stores in the US in fiscal year 2022.
Nordstrom’s New York City flagship during the holiday season. The company will open another 20 locations in the US this year
The company says its decision will position itself ‘for greater flexibility amid ongoing macroeconomic uncertainty’
Fourth fiscal quarter 2022 revenues resulted in a net profit of $119 million for the company.
In the last quarter, menswear had the strongest growth compared to 2021. Overall, menswear, footwear and womenswear had the strongest growth compared to 2022.
According to the release, “For the fourth quarter ended January 28, 2023, net sales declined 4.1 percent from the same period in fiscal 2021 and gross merchandise value (“GMV”) declined 4.2 percent.”
The company ended the year with $1.5 billion in available liquidity, including $687 million in cash and the full $800 million available on its revolving credit line.