nordstrom rack won't be opening for a while in canada
Canada Will Have to Wait for Nordstrom Rack
By Adam Levine-Weinberg | More Articles
March 25, 2014 | Comments (0)
Canada represents a huge opportunity for luxury retailer Nordstrom (NYSE: JWN ) . The company will make its first foray into that market later this year and plans to open six full-line department stores there by early 2017. These stores will be located in six of the top 11 malls in North America in terms of sales productivity.
Nordstrom also plans to bring its off-price Nordstrom Rack stores to Canada. However, it has now pushed back the Canadian debut of Nordstrom Rack from 2015 until 2017. Entering the Canadian market more slowly is probably a wise move because of the operational complexity of launching in a new country and Canada's sluggish economic growth -- a harsh lesson that Target (NYSE: TGT ) has recently learned.
Slowing down the Canadian expansion
Eventually, Nordstrom plans to open up to 10 full-line department stores in Canada along with about 20 Nordstrom Rack off-price stores. So far, it has selected sites for the first six full-line stores. Nordstrom will open its first Canadian store in Calgary this fall. This will be followed by new stores in Ottawa and Vancouver next year, and three Toronto-area stores that will open in 2016 and 2017.
Nordstrom originally planned to roll out its Nordstrom Rack off-price brand on a similar timetable. However, management realized that its existing growth plans were creating enough complexity that it would be (small-f) foolish to force the expansion pace. (Nordstrom is also in the midst of a four-year plan to double its Nordstrom Rack store base in the U.S.)
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