Description: American high-end retailer Nordstrom is pulling out of Canada. The chain started Canadian operations in 2014, but it has not been making any money here, reporting losses of $72 million in 2022. The Retail Strategy Group’s Liza Amlani was not surprised by Nordstrom’s move, noting that it had made the same classic mistake as other American firms starting operations in Canada: failing to distinguish the fact that what works in the United States may not work in Canada’s retail environment.
Date: March 3, 2023
1) How many students in your class have ever shopped at Nordstrom?
2) Why do you think smart and highly paid executives at Nordstrom and other retailers have made the mistake of assuming Canadian markets will behave just like U.S. markets?
3) Page 6-5 of Wiley’s Financial Accounting: Tools for Business Decision-Making tells us about an innovation that Nordstrom has made to expand the shopping options for consumers. What is the innovation noted there?