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.
Companies are making money, the economy is cooling down, and a rate cut or two possible by the fall? It might be time to break out the cautious optimism.
Fed Chair Jerome Powell reported that rates would likely remain elevated due to sticky inflation. Zillow breaks down how this could impact the housing market.
Amanda Chin, SVP of Marketing for the Golden State Warriors, stops by Cheddar to debut Valkyries name and logo and talks why women sports is good for business.
The return of ‘meme stocks’ don’t mean it’s time to panic about the stock market. If you want something to worry about… look no further than inflation.
Andela is revolutionizing global work for a sustainable future. Their impact includes diverse skills, income growth, & successful hiring in untapped locations.
