The US trading group Nordstrom Inc. announced on Thursday that it would discontinue its activities in Canada. “Despite our best efforts, we do not see a realistic path to profitability for our Canadian business,” said CEO Erik Nordstrom in a statement. Therefore, the group decided “after conscientiously examining all reasonably justifiable options” to completely wind up its Canadian business.
The retailer has had a presence in Canada since 2014. Most recently, he ran six Nordstrom-branded department stores there and seven branches of his off-price chain, Nordstrom Rack. All stores should now be closed by the end of June. The online business in the country was stopped immediately after the announcement of the withdrawal. According to the company, a total of around 2,500 employees in Canada are affected by the closures.
As a result of the decision, the group expects one-time charges on earnings in the range of USD 300 to 350 million (EUR 282 to 329 million) before taxes, which will primarily result from the write-down of investments in Canada. The retailer put the expected drop in sales in the current year at around 400 million US dollars.
At the same time, Nordstrom published its business figures for the 2022/23 fiscal year, which ended on January 28. Accordingly, the total turnover was increased by five percent to 15.5 billion US dollars. Net income grew 38 percent to $245 million. In the final quarter, however, the retailer had to accept a decline in sales and profits.