Nordstrom closing in Canada, these department shops remain

When Nordstrom announced this week that it should be shutting down its Canadian operations, it joined an extended list of American retailers which have tried, but ultimately failed, to successfully put down roots in Canada.

“Despite our greatest efforts, we don’t see a practical path to profitability for the Canadian business,” said chief executive Erik Nordstrom in an announcement.

The Seattle-based retailer will close its 13 Canadian stores — six Nordstrom and 7 Nordstrom Rack stores — by late June, cutting some 2,500 jobs, the corporate announced Thursday.

Its e-commerce business, nordstrom.ca, was to stop operations by the tip of the identical day.

Nordstrom’s exit from the Canadian market follows other large American retailers lately, including Sears, Goal and Bed Bath & Beyond.

As retailers proceed to face changing consumer habits amid an impending recession and high inflation, some do remain.

Here’s a have a look at a number of the large retail chains — each Canadian and international brands — still operating within the country and the way they’re faring.

Hudson’s Bay

Founded in 1670, Hudson’s Bay is believed to be North America’s oldest continually-operating company. It opened its first department store in 1913 and now has 85 locations across Canada, including two flagship stores in Toronto — one at Yorkdale and one other downtown on Queen Street West, in line with the retailer’s website.

Recently, the enduring Canadian brand announced it was reviving Zellers, the long-dormant discount banner which it had previously owned. Some 25 Zellers stores inside stores will open in Hudson’s Bays across the country, including three within the GTA.

However the retailer’s traditional brand doesn’t seem like doing as well. Last month, Hudson’s Bay announced it was shuttering two of its department shops in Alberta on account of “market changes.” And in January, the corporate said it was shedding 250 employees, about two per cent of its workforce, largely in corporate roles.

In 2008, Hudson’s Bay was sold to U.S. business executive Richard Baker. Its financial statements are not any longer public after the corporate was privatized in early 2020.

Simons

While other retailers have faltered, Simons has continued to punch well above its weight. Beloved in its home province of Quebec, the retailer has expanded significantly over the past decade, including opening its first Ontario store in 2016.

The corporate currently operates 16 locations across the country — most are in la belle province — with number 17 set to open in Halifax in 2024. Two could be present in Ontario in Ottawa and Mississauga.

Founded in 1840 as a small shop selling dry goods, Simons claims to be “Canada’s oldest family business,” with the Simons family still “fully involved and lively” in the corporate.

Like many other stores, nevertheless, Simons did struggle in the beginning of the pandemic. The corporate sold off some real estate and had to acquire a $30-million loan from BDC Capital, the Globe and Mail reported.

Holt Renfrew

Canadian luxury retailer Holt Renfrew, owned by the Weston Family, continues to operate seven stores across the country, despite significant changes to its operating model over the past decade.

The brand closed several stores lately, including locations in Ottawa, Quebec City and Toronto’s Sherway Gardens, while pivoting to concentrate on flagship markets and bigger stores. There are 4 Holt Renfrew stores within the GTA, including at Yorkdale and Mississauga’s Square One.

Once the undisputed leader in Canada’s luxury retail sector, the brand has faced stiff competition over the past decade, because of the arrival of American brands like Saks Fifth Avenue and Nordstrom.

Shortly after the arrival of those two competitors, Holt Renfrew drastically scaled back on its luxury services. Gone were its barber chairs, shoe shine operations and other services it began offering in 2014, following a $300 million renovation and expansion project.

Winners

On the opposite end of the spectrum from Holt Renfrew, there’s Winners, the off-price Canadian retailer with nearly 300 stores across the country. Owned by TJX Corporations, which also operates HomeSense and Marshalls, the brand is believed to be the country’s largest off-price retailer of family apparel and residential fashions.

Founded in 1982, the corporate was acquired by TJX Corporations in 1990. Winners claims to supply brand name and designer fashion 20 to 60 per cent below full-price retailers’ regular prices.

TJX Corporations’ Canadian division reportedly earned nearly $1.3 billion in net sales within the fourth quarter of 2022, up three per cent from the identical period in 2021. The report didn’t specifically include financial earnings for Winners.

Walmart

Walmart Canada, a subsidiary of the American retail giant Walmart, continues to succeed nearly three many years after it first arrange shop on this side of the border. The retailer operates greater than 400 stores across the country, as of January 2023, a part of a worldwide chain of greater than 10,000 stores.

However the discount retailer still faces stiff competition. Certainly one of its prime challengers is Canadian Tire, which has about 4 times as many locations as Walmart.

In its latest earnings report, Walmart reported quarterly net sales of $27.1 billion across Walmart International. The report doesn’t include a breakdown for Walmart Canada but stated that its Canadian subsidiary “led the best way” in its international division.