Nordstrom Canada has received permission from the Ontario Superior Court of Justice to begin liquidation sales at its closing stores.
The court approval was necessary as Nordstrom is winding down its Canadian operations under the Companies' Creditors Arrangement Act, which aids insolvent businesses in restructuring or ending operations in an orderly manner.
Nordstrom locations and seven Nordstrom Rack shops. This decision will result in approximately 2,500 job losses. The company's exit from the Canadian market is attributed to weak sales and earnings, as well as the impact of the COVID-19 pandemic on shopping habits, with many transactions shifting to e-commerce.
Nordstrom's Canadian affiliate generated only 3% of the group's net sales and lost money in every year of operation in Canada. High operating costs and the aftermath of the coronavirus pandemic contributed to the company's decision to shutter its Canadian stores.
The local e-commerce website ceased operations on March 3, 2023, and the physical stores are expected to close by late June 2023. Retail analysts believe that Nordstrom 's failure in Canada could signal bigger problems in the Canadian retail market, with some suggesting that the days of big department stores may be numbered.
Nordstrom's exit follows similar moves by other American retailers, such as Target and Sears, which also closed their Canadian outlets in recent years.
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