News   Dec 20, 2024
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Nordstrom

The one size fits all/blanket approach model wasnt going to work and they did not do a good job at making adjustments there.

The company put a lot of money into expanding and trying to make things work in Canada so the investment portion was definitely not a dramatic issue early on, but there was some weird disconnect with the company as they didnt want to set up a Canadian Head Office. Which leads me to to the point of understanding the Canadian market; you need management (upper management) who understands what each store market needs, and the company's unwillingness to have permanent management who would spearhead and oversee this just baffles me to this day.
I certainly wasn't their target customer, only ever shopping at their Rack location after all, but they lost me forever as a customer when they expired my loyalty points during the pandemic, during lockdown in Ontario in 2021 when we couldn't even shop in store, and they refused to reinstate them. Disconnect between the US where everything was open and here? Dunno.

Bye bye.
 
I’m not surprised one bit that Nordstrom is departing. I’ve been to a few of their stores (Eatons, Yorkdale and Sherway). They’re prices are absurd for the quality of the products eg. $200 for a ripped t-shirt that’s made in China because of X-brand. That’s not to say it wouldn’t be purchased, there’s lots of people who like to spend big money on dumb things. My bigger problem is that their style selection just doesn’t cut it for the Toronto area. Their selection is always American styles or trendy LA-West Coast styles, things that would be popular in the US. Shoppers here come from all over the world and have been exposed to European and Asian fashion style trends. People like stylish and fitted clothes, there’s a reason why H&M and Zara have a certain draw if we remove the pricing aspect.

I seem to always walk through Nordstrom just to do a quick browse and go straight to their Top Man area. It’s so rare to see anyone carrying Nordstrom shopping bags. I tend to end up hiking out to Simons just because their styles, quality and euro fit are amazing for the prices they charge. The numerous times I’ve gone to the Sherway location it’s always empty but in the mall people are shopping from higher end brands.

My final point is touching on societal culture. Toronto and the GTA tends to draw more from international, European and London fashion nowadays due to immigration. Nordstrom is purely American fashion. Just going off of my qualitative observation, the HBC men’s department at Eatons tends to draw more customers who are purchasing higher ticket items than the men’s department at Nordstrom (eg. Sandro, Ted Baker, Reiss, Hugo Boss etc.).

I just hope Top Man is picked up by someone in the GTA.
 
I had been to the Nordstrom Rack on Bloor a few times and it always seemed busy, yet the main Eaton Centre store was always empty.
 
Nordstrom's American stores are so much better. They have better selection. The service is better, and the sales are better too. For too long, Nordstrom didn't let you buy online without paying high shipping fees and duties as a Canadian, despite their presence in Canada.

A lot of Americans became fans of Nordstrom when they got an amazing deal during one of their major sales, which are generally much more muted in Canada. I remember finding nothing of interest on sale during their anniversary sales year after year in Canada, which are famous in the US for the deals you can get.

Nordstrom delivered perhaps 65-70% of the experience of shopping at their American stores in Canada, which wasn't enough to cut it in the Canadian marketplace.
 
Nordstrom's American stores are so much better. They have better selection.

Setting aside my past critiques of how they chose to design the TEC space; I would note, one of the problems they ran into here was that many of the brands they retail in the U.S. already had (sometimes exclusive) concession deals w/Holts; and/or HBC.

It's a different market, and they were never going to be able to replicate the exact same brand offer as in the U.S.; but what they needed to do was find the right substitutions. They also needed to be a bit more aggresssive in poaching from Holts or HBC; but they had a problem, which is that they had nowhere near the reach of either in Canada. (they were getting close to Holts, but with no Montreal presence.....)

The service is better, and the sales are better too.

I think it's again important to point out a different retail operating environment, including one with higher rents per ft2, and higher labour costs than many of their U.S. outposts.

A market with a bit less extreme economic disparity, and a bit lower disposable income in the median space, particularly after housing costs also changes equations.

That's not to let Nordstrom off the hook; it's why you need to hire some management with experience in Canadian retail for your Canadian operations, so you understand how big the market is for you and where you can honour what customers who know you love; but also adapt your offer to fit the market.

For too long, Nordstrom didn't let you buy online without paying high shipping fees and duties as a Canadian, despite their presence in Canada.

That was bad.

A lot of Americans became fans of Nordstrom when they got an amazing deal during one of their major sales, which are generally much more muted in Canada. I remember finding nothing of interest on sale during their anniversary sales year after year in Canada, which are famous in the US for the deals you can get.

Nordstrom delivered perhaps 65-70% of the experience of shopping at their American stores in Canada, which wasn't enough to cut it in the Canadian marketplace.

This is an interesting statement. I am told that the Vancouver store was, at one point, the highest performing store in the entire chain.

It did fall off a bit; but was surely a money maker.

So I think it's important to ask why success in Vancouver, but not Toronto?

I would posit a few answers.

1) Much higher brand recognition in Vancouver. Nordstrom is based in Seattle, which had its flagship location as well. The proportion of Vancouverites familiar w/the brand would be higher than was the case in Toronto. No full-line Nordstrom in Buffalo, NY could be consequential.

2) The Vancouver market is more demographically similar to Seattle, as opposed to Toronto/Ottawa or Calgary.

3) They did a better job on the Vancouver store, relative to TEC.

4) Promixity to HQ allowed for greater direct intervention/resources/problem-awareness

5) Unique appeal of Vancouver to high end Asian nationals who made up a material portion of that market. Which did not apply in Toronto. (by nationals, I meaning citizens/residents of Asian countries flying into to Vancouver to shop)
 
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Not surprised - if anything, I would have expected this to happen much sooner. I've walked through the EC location a few times to browse, and just laughed to myself upon seeing sneakers priced upwards of 500 bucks. Especially in the post-pandemic, high inflation world, there's just not enough people with more money than brains who can just blow that kind of dough on needless frills to make such a chain profitable, and I strongly suspect that demographic is shrinking. I mean c'mon, there's literally an H&M next door! 🤣

I wonder how long @Northern Light was sitting on this scoop ;)
 
Huge blow for the boomer market and the 40 to 50 crowd. They are the ones with the disposable income that were shopping at Nordstrom. Millennials and Gen Z's are into thrifting or fast fashion. There is so many great stores and online retailers. You don't need to spend thousands of dollars to look good.
 
EATALY should nix their current plans at Sherway and just take the Nordstrom space instead :D

Would be great to bring some food retail back to the tent area. I still think the food court move to the north side was a huge blunder. It was so wonderful in the tent space.
 

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