Nordstrom's Global Expansion

A good prospect for market expansion is to begin with Canada, due to proximity to United States and considering how well American-based entrants have done in Canadian fashion markets. Many U.S. retailers are increasingly turning to the Canadian market to expand as new retail development in the United States has largely stalled in recent years, making the Canadaian market a very attractive option. For Norsdtrom, offers many incentives, including an existing customer base; many Canadian customers already shop in Nordstrom stores in the Northwest, particularly Seattle, and there are already approximately 15,000 Canadian households that are in the Fashion Rewards program. Expanding into Canada also allows Nordstrom to open more full-line stores in attractive areas. In the U.S., the number of attractive locations for full-line stores has dwindled, and newer Nordstrom stores have been smaller in size, typically have been 140,000 square feet or smaller. By opening stores in Canada, Nordstrom will have the opportunity to introduce larger stores and this can be accomplished by taking over the leases for Already existing Sears stores that have recently sold back their leases as they recently closed or will be closing. This gives Nordstrom the chance to enter the market with four large, newly renovated stores that will open in Calgary, Ottawa, Vancouver and Toronto within a two year timeline (as stores become ready for renovation after Sears has left each location) and will range from 230,000 square feet in Vancouver’s Pacific Center to 138,000 square feet in Toronto’s Sherway Gardens Mall. Three of the locations are former Sears stores that are in Cadillac Fairview malls while the Toronto store will be a newly constructed unit (as the Sears store there has not sold its lease).