Nordstrom has announced it will open nearly 20 new Nordstrom Rack store locations across the United States in 2023.
While a new report reveals the luxury department store chain will shutter stores in Canada, the company plans to grow its more accessible Nordstrom Rack sister brand in the months ahead.
“As we enter fiscal 2023, we are focused on enhancing the customer experience, improving Nordstrom Rack performance, increasing inventory productivity and continuing to advance our supply chain optimization initiatives,” said CEO Erik Nordstrom in a statement.
Nordstrom, which first opened as a shoe store in 1901, currently has 241 Rack locations spanning the U.S. Opening its first location in 1973, Nordstrom Rack is known for offering customers major deals on its inventory.
California will see seven new locations open, from Los Angeles to Anaheim Hills to San Clemente. Other stores are expected to open in Las Vegas, Nevada, Salem, Oregon, Olympia, Washington, Wichita, Kansas, Chattanooga, Tennessee, and Denton, Texas.
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The strategy aims to increase revenue as the company reports its net earnings have seen a decline. The “winding down” of operations in Canada, where Nordstrom has operated seven Rack locations, will amount to a loss of approximately $400 million in sales.
In response to the shutdowns of stores in Canada, Eric Nordstrom declared, “We regularly review every aspect of our business to make sure that we are set up for success. We entered Canada in 2014 with a plan to build and sustain a long-term business there. Despite our best efforts, we do not see a realistic path to profitability for the Canadian business.”
