American luxury department store group Nordstrom on Thursday announced its withdrawal from Canada, which has resulted in the closure of its 13 stores and the layoff of 2,500 employees.
“We came to Canada in 2014 with a plan to establish and maintain a long-term business here. Despite our best efforts, we do not see a realistic path to profitability for the Canadian subsidiary,” CEO 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 in operations are expected to be completed by the end of June, lowering the group’s net sales guidance by $400 million but raising its earnings before interest and tax guidance for fiscal 2023 by $35 million. dollars is increased. compared to 2022.