Nordstrom has announced plans to close all 13 of its stores in Canada and end operations there while opening 20 new stores in the US in 2023.
The decision was described as a “decisive action” to simplify operations and focus on driving long-term profitable growth in the company’s core US business.
The Canadian stores were opened in 2014, but CEO Erik Nordstrom said there was no realistic path to profitability for the Canadian business.
The company currently operates 358 stores in North America, 13 of which are in Canada and will close.
The decision to close Canadian operations is part of the company’s regular review process, which aims to ensure the company is set up for success.
Nordstrom Canada operates six Nordstrom stores, seven Nordstrom Rack stores, and the Canadian Nordstrom website.
The move will right-size inventory and position the company for greater agility amidst continuing macroeconomic uncertainty. The decision will affect about 2,500 employees.
Nordstrom shared its plans to open 20 new US stores in 2023, including one relocation effort.
The company opened three new stores in the US during the fiscal 2022.
In the final quarter of fiscal 2022, Nordstrom reported net earnings of $119 million, with men’s apparel experiencing the strongest growth compared to the previous year.
Overall, men’s apparel, shoes, and women’s apparel had the strongest growth compared to 2021.
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.
»Nordstrom announces plans to close all 13 of its stores in Canada«
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