The American luxury department store group Nordstrom announced Thursday to withdraw from Canada, leading to the closure of its 13 stores and the layoff of 2,500 employees.
“We came to Canada in 2014 with plans to build and sustain a long-term business here. Despite our best efforts, we do not see a realistic path to profitability for the Canadian branch,” group boss Erik Nordstrom said in a statement.
The move, he said, will allow the company to “simplify” its operations and refocus on its goal of “long-term profitable growth” in the United States.
Nordstrom is also closing its online retail site in Canada.
The in-country inventory liquidation and reduction of its operations is expected to be completed by the end of June, slashing the group’s net sales forecast by US$400 million, but raising its earnings before interest and tax forecast by $35 million for fiscal year 2023, compared to 2022.