Nordstrom anticipates Canadian retail sales of about $1 billion once its full-line and Nordstrom Rack stores have all opened. Such competition will be challenging to other Canadian retailers, all competing for Canadian shopping dollars in country with a relatively small population.
Nordstrom anticipates opening between 8 and 10 full-line Canadian stores, as well as between 15 and 20 Nordstrom Rack stores. So far, the company has secured future Nordstrom store locations in Vancouver, Calgary and Ottawa, as well as two locations in Toronto (at Sherway Gardens and Yorkdale Shopping Centre). Several more Nordstrom locations will be announced, likely including Downtown Toronto, Edmonton, and possibly Winnipeg. The province of Quebec, at the moment, doesn't appear to be on Nordstrom's radar.
Nordstrom Rack is also on the hunt for Canadian store locations and is in talks with several landlords. We've been informed that a deal has likely been finalized for Canada's first Nordstrom Rack store at Ottawa's Trainyards, for example.
Canada's retail market has its limits, and Nordstrom's anticipated $1 billion piece of the retail pie could take sales away from competitors such as Holt Renfrew and Hudson's Bay. Holt Renfrew already boasts sales of about $800 million annually according to industry insiders, and Hudson's Bay's upscaling strategy has seen it start to carry many of the same labels found at Nordstrom. Even more competition will arise once Hudson's Bay-owned Saks Fifth Avenue opens up to 7 full-sized Canadian stores.
Canadian retailing is coming of age, and our selection of stores and merchandise is becoming comparable to that of the Unites States. At the same time, there's concern that for such a small country, Canada is potentially seeing too much new high-end and department store retail.
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