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Nordstrom to postpone Rack stores opening in Canada

RBR Staff Writer Published 24 March 2014

Seattle-based upscale retailer Nordstrom has outlined plans to postpone its discount Rack stores opening in Canada until 2017.

This decision is part of Nordstrom's plan to switch focus on the launch of its full-line department stores, its first department stores abroad.

Nordstrom is all set to open six Canadian department stores, starting with a location in Calgary this autumn, and with a five-year, $1bn technology upgrade.

Initially, the retailer was planning to open Rack stores in Canada next year.

Nordstrom spokeswoman Brooke White told Reuters that, "Given everything on our plate in both the U.S. and Canada and the complexity of it, we thought, let's work on getting the (Canadian) full-line stores up and running to the best of our ability first."

Rack stores, which offer lower-priced designer merchandise made specifically for the chain as well as clearance items from the Nordstrom stores, have been key to Nordstrom's results, the company said.

The company believes that there is room for as many as 20 Rack stores in Canada and 10 full-line department stores.