Nordstrom wants to expand into Canada; particularly in Vancouver as it views expansion would be a good step in the company’s overall strategy, as well as opening up new markets. However, Nordstrom also understands that it needs to complete its market research first, thus a spokesperson has stated that the company is still “doing its homework”.

While the upscale retailer has been doing research and has identified some good strength to enter the market such as the Canadian economy is doing well and that the shopping culture between the customers is similar, Nordstrom should consider the barrier to entry as well as the buyer power. There is already Holt Renfrew located in Vancouver, another upscale retail that sells designer goods. And while there are customers who are willing to pay for the designer products, the majority of consumers in Vancouver are middle class and cannot afford all these luxuries at an ongoing basis. Therefore Nordstrom needs to find a way to differentiate itself from Holt Renfrew before it can fully establish itself in the Vancouver market