Nordstrom will shutter 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 enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business,’ said company CEO Erik Nordstrom.
‘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,’ 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 shutter its entire Canadian operation this year
The company is branding the decision to close its 13 Canadian stores a ‘decisive action’ that was taken to ‘right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty.’
Nordstrom Canada operates six Nordstrom stores and seven Nordstrom Rack stores, as well as the Canadian Nordstrom website. The holistic endeavor employs about 2,500 people.
The decision to shutter Canadian operations, which the company began in 2014, arrive as Erik Nordstrom said his family’s company has made a practice of ‘regularly review(ing) every aspect of our business to make sure that we are set up 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 business.
‘We want to thank our team for their performance and dedication in serving customers in Canada. This decision will simplify our structure, intensify focus on our growth and profitability goals and position us to create greater value for our shareholders,’ he concluded.
According to the company’s report, there are currently 358 operational 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 in 2023, one of which is a relocation effort. The company opened three new stores in the US during fiscal 2022.
Nordstrom’s flagship New York City storefront at the holidays. The company will open an additional 20 US locations this year
The company says its decision will position itself ‘for greater agility amidst continuing macroeconomic uncertainty’
Fourth fiscal quarter earnings for 2022 resulted in net earnings of $119million for the company.
In the final quarter, men’s apparel had the strongest growth compared to 2021. Overall, men’s apparel, shoes and women’s apparel had the strongest growth compared to 2022.
Per the release: ‘For the fourth quarter ended January 28, 2023, net sales decreased 4.1 percent versus 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 the full $800 million available on its revolving line of credit.