News Feature | January 3, 2014

2014: The Year Nordstrom's Visions Of Canada Become Reality

Source: Retail Solutions Online
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By Anna Rose Welch, Editorial & Community Director, Advancing RNA

The company is hard at work preparing to bring the brand to Calgary in September

A little more than two years ago, retailer Nordstrom set its sights on Canada and announced its intentions to expand for the first time outside U.S. borders. Over the past year, the company has been pondering locations, and in 2014, Nordstrom will enter the Canadian market in the fall with its first international store in Calgary. The company also plans to open locations in Ottowa and Vancouver in 2015, followed by two locations in Toronto in the fall of 2016.

Even before the company formally announced its first location in Canada, there were speculations that 2014 could be the year of Nordstrom in Canadian retail. In an article for the Wall Street Journal, Karen Johnson says that expectations for the arrival of Nordstrom have been high and are already stirring up competitors within the Canadian market. Canadian high-end retailer, Hudson’s Bay has been busy expanding some of its department offerings and partnering with various other companies to enhance its merchandise offerings. One retail strategist, David Gray says that “a gravitational pull in the market” is going to cause more focus on higher-end retailers and could inspire other pricier retail brands to expand into Canada. The country has already seen higher-end companies moving in, including J. Crew, White House Black Market, Ann Taylor, Mulberry, and Tory Burch. And this year in September, Nordstrom will be added to the list.

In addition to its five planned locations, there are rumors circulating that Nordstrom could also benefit from struggling retailer Sears’ decision at the end of October to sell leases to five of its Canadian properties, including the coveted location at Toronto’s Eaten Centre located in downtown Toronto. According to a Globe and Mail article, the retailer has been negotiating with the center’s landlord to move into this space; however, no announcement has been made to affirm that the retailer will secure this location. The area appears to be an priority for the retailer, though, as a Nordstrom spokesman says, the company “has been pretty consistent all along about the fact that we’d like to be in downtown Toronto.” This move would further bolster the company’s presence in the central and eastern parts of Canada and help pave the way for the retailer’s ambitions to open from 8 to10 stores, along with 15 Nordstrom Rack discount locations in 2015.

There are already a lot of preparations under way for Nordstrom’s expansion.In June, the company announced its intentions to begin advertising the brand’s arrival, beginning its outreach to colleges and bloggers in Calgary. The company also planned to hire department managers to begin training them for three months in the U.S. to prepare them to meet the brand’s reputed customer-service ethic. As Nordstrom Canada president Karen McKibbin says, “We get upset if we don’t serve the customer.” (Indeed, McKibbin pointed out that one employee once flew to Paris to retrieve a dress for a client on a deadline.) Employees in stores will be equipped with mobile POS systems to cut down on queues and checkout time. While the company has been boosting its online presence, it will probably take some time before Canadian customers are able to experience Nordstrom online. 

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