Lam, Gabriel. Digital image. Sneak Peek: 25 Photos of the Massive Nordstrom Vancouver Store. Vancitybuzz, 10 Sept. 2015. Web. 19 Nov. 2015.
In September of this year, Nordstrom opened a new store in the heart of downtown Vancouver. James Smerdon, the vice president of Colliers International Consulting, stated that Nordstrom was “going to revitalize an area of the city that had been suffering for over 30 years because of planning policies and retailers who were not able to excite the market” (Lee, Jenny). Yet within the first week of being open, Norstroms’ “shares fell by as much as 16% in afternoon trading on Friday” (Oyedele, Akin).
So the question is, why is Nordstrom struggling – even with the addition of a brand new store in a very shopping-heavy area?
Colby Evans believes the reason is the lowered demand in winter clothing. Although that could be one of many reasons why, I don’t believe it to be the main reason.
Personally, I think the main reason is that Nordstrom just isn’t that popular in Canada.
Why isn’t it that popular? Well, the first Nordstrom in Canada opened in 2014 (Nordstrom History). Since it’s a fairly new addition to the shopping scene in Canada, customers have already formed strong relationships with other companies that sell the same type of products.
Why buy shoes, for instance, from Nordstrom when you can buy them from another store for the same price, at the same quality? Unless Nordstrom could offer something that another company couldn’t, a customer wouldn’t venture out of their comfort zone.
External Sources:
https://blogs.ubc.ca/colbyevans/2015/11/16/weak-earnings-for-nordstrom/
Lee, Jenny. “Nordstrom Opening Brings Zing to Downtown Vancouver.” Www.vancouversun.com. N.p., 19 Sept. 2015. Web. 18 Nov. 2015.
“Nordstrom History.” Nordstrom. N.p., n.d. Web. 18 Nov. 2015.
Oyedele, Akin. “Nordstrom Is Crashing.” Business Insider. Business Insider, Inc, 13 Nov. 2015. Web. 18 Nov. 2015.
