All 13 Nordstrom stores in Canada are expected to be shuttered by June, the company said. The decision makes it the second major American retailer to wind down operations in Canada this year. Bed Bath & Beyond exited the country in February.
in Canada reveal a dismal picture. The company lost money in every year of operation in Canada, the company told the court, adding that the Canadian affiliate generated only 3 percent of the group’s net sales. Since its inception, the Canadian entity was given $775 million in funding. High operating costs and aftershocks of the coronavirus pandemic led to the company’s decision to shutter, it said.
The company operated six Nordstrom stores and seven discount stores called Nordstrom Rack in Canada. The local e-commerce website in Canada ceased operations Thursday, while the stores are expected to shutter by late June, the company said. The move will hit the company’s 2023 prospects: The wind-down is predicted lower net sales of the company by $400 million this year, Nordstrom’s quarterly earnings reported noted. The company said it anticipates a 2 percent drop in revenue.
The Seattle-based company operates more than 300 stores across the United States and reported earnings of $119 million for the latest quarter. Men’s apparel, shoes and women’s apparel had the strongest growth last year versus 2021.“There is no change to Nordstrom US’s operations or stores and Nordstrom US continues to operate on a business-as-usual basis,” the company said in a statement.
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