Nordstrom will close ALL of its 13 Canadian stores and end its operations in the country
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Nordstrom will close ALL of its 13 Canadian stores and pull out of the country, but plans to OPEN 20 more stores in the US.
- The retail giant is closing its 13 stores in Canada, which it began opening in 2014.
- “Despite our best efforts, we do not see a realistic path to profitability for the Canadian business,” said CEO Erik Nordstrom.
- The company also shared its plans to open 20 new stores in the US in fiscal 2023.
Nordstrom will close all of its 13 stores in Canada and end operations in the country that borders the US to the south, while opening 20 new US locations in 2023.
“This will allow us to streamline our operations and further increase our focus on driving long-term profitable growth in our core business in the US,” said Erik Nordstrom, the company’s chief executive officer.
“As we enter fiscal year 2023, we are focused on improving the customer experience, improving Nordstrom Rack performance, increasing inventory productivity, and continuing to advance our supply chain optimization initiatives,” he continued.
“We remain confident in the strength of our brands and our ability to drive profitable growth and deliver long-term value to our shareholders.”
A Nordstrom store in the Toronto Eaton Centre: The company will close all of its Canadian operations this year.
In addition to closing its 13 Canadian locations, Nordstrom will open 20 new US stores this year
The company calls the decision to close its 13 Canadian stores a “decisive action” taken to “adjust the size of our inventory as we enter the new year, positioning ourselves for greater agility amid continued macroeconomic uncertainty.”
Nordstrom Canada operates six Nordstrom stores and seven Nordstrom Rack stores, as well as the Canadian Nordstrom website. The holistic effort employs about 2,500 people.
The decision to close Canadian operations, which the company began in 2014, came as Erik Nordstrom said his family’s company has adopted the practice of “regularly reviewing all aspects of our business to ensure we are set up for success.” .
“We entered Canada in 2014 with a plan to build and maintain a long-term business there,” he said.
‘Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.
‘We want to thank our team for their performance and dedication to serving customers in Canada. This decision will simplify our structure, intensify the focus on our growth and profitability objectives and position us to create greater 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 relocation effort. The company opened three new stores in the US during fiscal year 2022.
Nordstrom’s flagship storefront in New York City during the holidays. The company will open an additional 20 US locations this year.
The company says its decision will position it “for greater agility amid continued macroeconomic uncertainty.”
Earnings for the fiscal 2022 fourth quarter generated net earnings of $119 million for the company.
In the last quarter, menswear had the highest growth compared to 2021. Overall, menswear, footwear and womenswear had the highest growth compared to 2022.
According to the statement: “For the fourth quarter ended January 28, 2023, net sales decreased 4.1 percent compared to the same period in fiscal 2021 and gross merchandise value (“GMV”) decreased 4.2 percent.
The Company ended the year with $1.5 billion in available liquidity, including $687 million in cash and $800 million available in its revolving credit facility.