US luxury department store chain Nordstrom announced Thursday it is pulling out of Canada, closing 13 stores and putting 2,500 staff out of work.
“We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business,” chief executive Erik Nordstrom said in a statement.
The move, he said, will enable the company to “simplify our operations and further increase our focus on driving long-term profitable growth in our core US business.”
It is also shuttering its Canadian retail website.
The liquidation of its Canadian inventories and wind-down of operations is expected to be completed by late June, slashing the company’s total net sales by about US$400 million but bumping up its earnings by $35 million in 2023, compared to last year.
The company said it also expects to report pre-tax charges of up to $350 million in the first quarter of fiscal 2023 as it writes down its Canadian investment.
