Nordstrom is shutting down all Canadian retail stores — Retail Boss

Nordstrom has announced it will be shutting down all Canadian Nordstrom’s and laying off 2,330 employees. Nordstrom Inc. says it is winding down its Canadian operations and closing all 13 of its stores in the country.

The company, which launched in Canada in 2014, has six Nordstrom stores and seven Nordstrom Rack locations. All stores will close and all the company’s staff in Canada will be let go.

In court filings, the company says Nordstrom’s Canadian business has continued to lose money every year since opening its operations.

“We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business,” the company said in a statement.

Gift cards will only be accepted until the end of in-store liquidations that will be taking place — plans to start happening around mid-March. Nordstrom in Canada will no longer be issuing new gift cards as of today (Thursday).

“We took decisive actions to right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty. We also made the difficult decision to wind down operations in our Canadian business. This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc in a press release.

He continued: “As we enter fiscal 2023, we are focused on enhancing the customer experience, improving Nordstrom Rack performance, increasing inventory productivity and continuing to advance our supply chain optimization initiatives. We remain confident in the strength of our brands and our ability to drive profitable growth and deliver long-term value to our shareholders.”

The company’s Nordstrom.ca site has stopped sales effective immediately. Any orders placed online before Thursday will be filled, but no new orders will be processed online. After March 17, all sales are final and returns and exchanges will no longer be permitted.

Retail expert, Jeanel Alvarado attributes the departure of these store chains to the struggling Canadian retail market, which has seen many stores closing down in recent years. “The closures have left many Canadians without access to department stores, with shopping destinations such as Holt Renfrew also closing down in cities such as Edmonton. The closing of Nordstrom stores will have a ripple effect on employment, as jobs will continue to be lost in cities like Vancouver and Langley due to these stores leaving Canada, for good. In addition, it has also taken away potential shopping options for Canadians who live outside of major metropolitan areas who may not have access to the same variety of retailers as those located downtown Vancouver or other large cities.”

The recent announcement of the closure of six Nordstrom, seven Nordstrom Rack locations, 54 Bed Bath & Beyond and 11 BuyBuy Baby stores has left many Canadian shoppers searching for alternative places to shop. This is especially concerning for those who have come to rely on these stores as a go-to source of luxury goods, baby items and home goods.

Originally published at https://retailboss.co on March 2, 2023.