High-end clothing retailer Nordstrom is shutting down all 13 stores in Canada and laying off 2,500 employees after failing to make a profit in America's neighbor to the north.
The company has already shuttered its ecommerce operations in the country. The decisions come as Nordstrom tries to shrink its footprint to ensure financial stability.
"We took decisive actions to right-size our inventory as we entered the new year, positioning us for greater agility amidst continuing macroeconomic uncertainty," said Erik Nordstrom, chief executive officer of Nordstrom, Inc., in an earnings release.
"We also made the difficult decision to wind down operations in our Canadian business. This will enable us to simplify our operations and further increase our focus on driving long-term profitable growth in our core U.S. business."
Like many retailers, Nordstrom has ramped up discounts and markdowns in recent quarters to keep its inventory levels in check. It's also struggled with slower sales due to inflation, which isn't expected to go away anytime soon.
“We expect that elevated inflation and rising interest rates will continue to weigh on consumer spending, especially in the first half of the year," said Michael Maher, interim chief financial officer, in an earnings call.
The closures in Canada are set to take place by June.
Delta CSO Amelia DeLuca reveals at the Fast Co. Innovation Festival how tech, sustainable aviation fuel, and smart operations are revolutionizing air travel.
Colin & Samir break down YouTube’s $100B payout to creators and explore why nearly a third of Gen Alpha want to be YouTubers — plus what that means for you.
Unpacking Jerome Powell’s surprise rate cut with Tematica Research CIO Chris Versace—what it signals, who wins, who loses, and what smart investors do now.
Oracle soars as it cashes in on the AI boom, Plus: Starbucks shares continue to fall under its new CEO, and does anybody actually want a new iPhone Air?
