Nordstrom Stores Failure in Canada

Nordstrom Stores Failure in Canada

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Nordstrom Stores Failure in Canada
Top Three Risks that Impacted Nordstrom Stores in Canada
On 2nd March 2023, Nordstrom Inc. decided to exit Canada after operating for almost ten years. According to Erik Nordstrom, the company’s chief executive officer, Nordstrom Inc. underwent financial losses, and it was challenging for the enterprise to be profitable (Bharti & Campbell, 2023). One of the primary risks that contributed to Nordstrom Inc. leaving Canada is the rise of digital or online shopping. Although the company had a website where Canadians bought things over the Internet, it was not the most preferred choice compared to its competitors.
The other risk that contributed to Nordstrom Inc. exiting Canada was economic factors or recession. Due to high interest rates and inflation, consumer spending was diminishing (Bharti & Campbell, 2023). Besides, the prices of products were rapidly rising without an increase in people’s income. Additionally, the small coverage of Nordstrom Inc. in Canada, which was mostly concentrated in urban