Case Notes/Answers
NORDSTROM EXPANSION INTO CANADA by Won-Yong
Oh Duane Myer
Discussion Questions:
Instructors can use the following questions to conduct a class analysis, or have groups of students
make presentations on the various questions.
1. How attractive is the luxury retail market in Canada?
2. Can Nordstrom be as successful in Canada as it is in the United States?
3. Evaluate Nordstrom’s decision to delay the opening of its Rack stores.
4. What should the chief executive officer of Nordstrom do to make the Canadian expansion
successful? Provide an implementation plan for future expansion into Canada.
, W16708
Teaching Note
NORDSTROM: EXPANSION INTO CANADA
SYNOPSIS
In August 2016, it had been almost two years since American fashion retailer Nordstrom, Inc. (Nordstrom)
opened its first Canadian store. In September 2014, Nordstrom entered the Canadian market by opening a
store in Calgary, the first of 10 planned Canadian stores. Nordstrom believed Canada to be an ideal location
for its global expansion. Company executives identified the country as a potential US$1 billion1 opportunity
with no language barrier and a population with a high average income.
Despite this enticing potential market, Nordstrom executives entered Canada with a slow, conservative
approach after observing the recent failure of Target’s Canadian expansion. Nordstrom faced slow
economic growth in Canada and fierce competition from other luxury retailers. Although Canada was an
attractive potential market to Nordstrom, increased competition and a changing economic environment
presented new challenges to the retailer’s international expansion plans. Given these challenges, how could
Nordstrom find success in Canada?
LEARNING OBJECTIVES
Upon completion of this case, students will be able to:
assess the attractiveness of a foreign market;
identify metrics by which a company can evaluate a new potential market;
analyze a company’s decision to expand internationally;
evaluate the benefits and costs of international expansion; and
consider how a company can effectively implement strategic initiatives for expanding internationally.
1
All dollar amounts are in US$ unless otherwise specified.
NORDSTROM EXPANSION INTO CANADA by Won-Yong
Oh Duane Myer
Discussion Questions:
Instructors can use the following questions to conduct a class analysis, or have groups of students
make presentations on the various questions.
1. How attractive is the luxury retail market in Canada?
2. Can Nordstrom be as successful in Canada as it is in the United States?
3. Evaluate Nordstrom’s decision to delay the opening of its Rack stores.
4. What should the chief executive officer of Nordstrom do to make the Canadian expansion
successful? Provide an implementation plan for future expansion into Canada.
, W16708
Teaching Note
NORDSTROM: EXPANSION INTO CANADA
SYNOPSIS
In August 2016, it had been almost two years since American fashion retailer Nordstrom, Inc. (Nordstrom)
opened its first Canadian store. In September 2014, Nordstrom entered the Canadian market by opening a
store in Calgary, the first of 10 planned Canadian stores. Nordstrom believed Canada to be an ideal location
for its global expansion. Company executives identified the country as a potential US$1 billion1 opportunity
with no language barrier and a population with a high average income.
Despite this enticing potential market, Nordstrom executives entered Canada with a slow, conservative
approach after observing the recent failure of Target’s Canadian expansion. Nordstrom faced slow
economic growth in Canada and fierce competition from other luxury retailers. Although Canada was an
attractive potential market to Nordstrom, increased competition and a changing economic environment
presented new challenges to the retailer’s international expansion plans. Given these challenges, how could
Nordstrom find success in Canada?
LEARNING OBJECTIVES
Upon completion of this case, students will be able to:
assess the attractiveness of a foreign market;
identify metrics by which a company can evaluate a new potential market;
analyze a company’s decision to expand internationally;
evaluate the benefits and costs of international expansion; and
consider how a company can effectively implement strategic initiatives for expanding internationally.
1
All dollar amounts are in US$ unless otherwise specified.
