Nordstrom is closing its stores in Canada.
Nordstrom, a network of upscale US department shops, said on Thursday that it was leaving Canada, closing 13 stores and laying off 2,500 employees.
In order to establish and maintain a long-term business in Canada, we migrated there in 2014. Erik Nordstrom, the company’s chief executive, said in a statement: “Despite our best efforts, we do not see a viable route to profitability for the Canadian business.
The company would be able to “simplify our operations and further strengthen our emphasis on creating long-term profitable growth in our core US business,” according to him, as a result of the move.
Also, it is closing down its Canadian retail website.
The company’s total net sales will be reduced by around $400 million but its profitability will increase by $35 million in 2023 compared to last year once the liquidation of its Canadian inventories and wind-down of operations are finished, which is anticipated to be completed by late June.
The business added that it anticipates writing down its Canadian investment in the first quarter of fiscal 2023, which could result in pre-tax charges of up to $350 million.