It has been nearly a week since Nordstrom announced its exit from the north and theories are going around about its replacement. While it’s not yet known what will replace Nordstrom stores in Canada, retail experts are weighing in with their thoughts.
Nordstrom operates six main stores and seven Rack stores across the country, all of which are set to close by June following a potential liquidation sale.
Retail specialist at CBRE, Kate Camenzuli, told Curiocity that all of these stores will likely “take a different approach” with the empty space, which she describes as “highly coveted pieces of real estate” for their size and placement in Canada’s busiest shopping areas.
Landlords will have to think outside the box to “create the best customer experience for their demographics,” said Camenzuli.
At some locations, that could look like a combination of retail shops and residential housing, said Jane Domenico, senior vice-president of retail at Colliers Real Estate Investment, to BNN Bloomberg.
“Across Canada, demand for residential has been extremely high, and so a lot of our retailers and our landlords working together have adopted a retail-and-residential friendly footprint to develop,” said Domenico.
Camenzuli believes that landlords may invite several emerging brands to open their first store in a small format, which is a growing trend in the Canadian retail landscape.
Cadillac Fairview, the landlord that oversees five of the six shopping malls where Nordstrom stores are located, told Curiocity that “it’s too early to speculate” what they will do with these spaces.
“Our team is working diligently to manage this change and work towards an outcome that is in the best interests of our centres and our long term success,” said Cadillac Fairview spokesperson Janine Ramparas.
Times are tough for brick-and-mortar stores these days, but, not all hope is lost. Zellers is rising from the dead with 25 new locations in Canada this year.
You win some, you lose some!