Nordstrom To Close Canadian Stores And Cut 2,500 Jobs
Luxury department store chain Nordstrom (JWN) is closing all of its Canadian stores and eliminating 2,500 jobs as it exits the country.
The Seattle-based retailer currently has six flagship Nordstrom stores and seven Nordstrom Rack outlets across Canada.
The company said that all 13 of its stores will be closed by the end of June this year. More immediately, Nordstrom’s e-commerce business, nordstrom.ca, has already been shutdown.
In a news release, Nordstrom said: “Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.”
News that Nordstrom is leaving Canada comes as the company reported fourth quarter results that showed it achieved net earnings of $119 million U.S., down 40% from net earnings of $200 million U.S. a year earlier.
The wind down of operations across Canada is expected to result in a $400 million U.S. decline in the company’s net sales.
Nordstrom first entered the Canadian marketplace in 2012 with a store in Calgary, Alberta. The company then expanded to Ottawa, Vancouver and Toronto. Nordstrom Rack, which sells luxury items at reduced prices, first entered Canada in 2018.
Nordstrom said it plans to hold a liquidation sale across the country later in March. Nordstrom gift cards will continue to be honoured and returns and exchanges will be permitted until March 17 at which point all sales will be considered final, the company said.
Nordstrom’s stock is down 25% over the past 12 months and trading at $19.33 U.S. per share.