Nordstrom Rack to expand in Canada

Nordstrom is coming for a piece of Canada's off-price market as they have their eyes set on expanding Nordstrom Rack in Canada. The company is opening its first Nordstrom Rack store in Vaughan, Ontario, marking their first store in Canada. This is just the beginning as the retailer plans to roll out an additional 15 stores throughout Canada. They already have plans to open a store in Toronto's Yorkville neighborhood later this year.

The 35,000-square-foot store officially opens this Thursday, and is promising savings of up to 70 percent off. Rather than focusing on the traditional American luxury brands, the store will feature 38 of the top 50 brands already sold in Canadian department stores.

Nordstrom Rack opens first Canadian store in Ontario

A few key difference between the Nordstrom Rack Canadian stores versus their North American counterparts is that 30 percent of merchandise will come from full-line Nordstrom stores, versus just 15 percent in North America. Travel gear will also be offered year round. Items will also be grouped by size rather than brand, because Nordstrom finds Canadian shoppers prefer to shop by size.

Currently, Nordstrom is planning on stocking Kate Spade New York, Nike, Tory Burch, Steve Madden, Hugo Boss, Ted Baker London, Rebecca Minkoff and Madewell. The store's biggest competition will come from nearby rival off-price chain Saks Off Fifth, the off-price chain of Saks Fifth Avenue, which also has a store in Vaughan, Ontario.

In a world of e-commerce, Nordstrom Rack's Canadian stores won't have the option to shop online yet. That doesn't mean it isn't coming, but the company is focusing on building their brick-and-mortar presence first.

It's been an interesting year of business for Nordstrom as the Nordstrom family has been pursuing a buyout of the company. They have faced a series of setbacks in trying to take their company private, most recently when the Nordstrom Board denied their 8 billion dollar buyout offer saying it was too low. Nevertheless, the company is still moving forward business as usual.

photo: via Nordstromrack.com