Canadian Nordstrom closing: gaps in jobs, retail space

Nordstrom’s departure from the Canadian market is causing losses of jobs and empty retail spaces. But, “is it Canada”?

The first Canadian Nordstrom store opened in Calgary in 2014, and now, not even a decade later, the high-end retailer is added to the list of those who didn’t make it in the Canadian market.

“Canadians may have not been romanced by Nordstrom in the same way that Nordstrom I think expected that it would be able to do so for Canadians, and people as a result were not shopping there,” said Craig Patterson CEO/publisher, Retail Insider Media Ltd.

“Is it Canada? Canada, there is nothing wrong with the retail market here, it is what it is. It might not be as big as some of our international folks think it is,” said Bruce Winder, retail analyst and author.

Patterson has studied Nordstrom for over 30 years, and says the fallout includes lease deals for neighbouring stores that could fall through as Nordstrom traffic won’t be there.

But he cannot think of one retailer that will fill the large store space that Nordstrom will leave vacant.

“I think that there is an opportunity for a retailer called La Maison Simons out of Quebec city to possibly occupy parts of some of these stores, perhaps if they so choose,” said Patterson.

Meanwhile, Winder says we should look at what is happening in the U.S. operations of Nordstrom to understand why the Canadian arm didn’t work.

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• Nordstrom closing all Canadian stores, 2,500 jobs affected

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“Nordstrom is doing quite badly in the U.S., their sales are way down, their profits are way down, their inventory is way up, and they have an activist investor there. There is a lot of pressure on the company, on the family, on the Nordstrom family to turn the ship around. And I think that is one of the things that got caught in the crossfire of that is the Canadian division,” Winder explained.

Nordstrom stores in Canada range in size from about 40,000 square feet to larger stores at over 100,000 square feet retail space that is staffed by over 2,000 people.

“I feel badly for the 2,300 people who are losing their job, because you know just like the store space where are they going to go? There isn’t another retailer standing in line. So, it’s unfortunate for them and a lot of them are very, very good at what they do, cause Nordstrom is one of the best, if not the best in customer service, ” Winder added.

This is not necessarily the end of the pattern of retail stores closing in the country, according to Patterson.

“This probably isn’t the end. I think we’re going to see at least another very well-known international retailer pull out of the country, it’s just a matter of time. I won’t say which one just yet,” said Patterson.