Nordstrom: Expansion into Canada

Case Solution

Won-Yong Oh, Duane Myer
Ivey Publishing ()

In August 2016, it had been almost two years since American fashion retailer Nordstrom opened its first Canadian store in Calgary. Nordstrom found Canada an ideal place for its global expansion. Executives identified the country as a potential billion-dollar opportunity with no language barriers and a population with a higher median income than the United States. Despite this attractive potential market, Nordstrom executives entered Canada with a slow and conservative approach. Nordstrom faced slow economic growth and fierce competition from other luxury retailers in Canada. While Canada was an attractive potential market, increasing competition and a changing economic environment presented new challenges for the retailer’s international expansion plan. How could Nordstrom be successful in Canada?

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