Nordstrom to shut down all operations in Canada

Nordstrom is leaving Canada, meaning the luxury franchise will close their six retail stores, and seven Nordstrom Racks throughout the country.

“We regularly review every aspect of our business to make sure that we are set up for success,” said Erik Nordstrom, Nordstrom’s CEO.

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“We entered Canada 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,” Nordstrom continued.

The chain employed 2,500 people in Canada.

“We took decisive actions to right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty,” said Nordstrom. “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,” Nordstrom continued.

Nordstrom Canada intends to wind down operations with the help of a third-party liquidator, and its Canadian e-commerce platform. The e-commerce platform will cease operations March 2. The in-store wind-down is anticipated to be completed by late June 2023.

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Revenue decline, including retail sales and credit card revenues, is expected to be 4-6% of total revenues to be offset by a decrease in operational costs.

Nordstrom reported fourth-quarter net earnings of $119 million, below investor expectations. Digital sales in the fourth quarter decreased 13% compared with the same period in 2021. Digital sales represented 40% of total sales during the quarter and 38% of sales for the fiscal year.