Dive Brief

• Nordstrom Inc. announced Jan. 15 that it will in March begin a retro-fit of a 3-level, 213,000-square foot space in downtown Toronto’s shopping destination, Eaton Centre, replacing Sears.
• The Seattle-based retailer said the store would open fall 2016, when it also plans to open a location at Yorkdale Shopping Centre, several kilometers northwest of downtown Toronto.
• Nordstrom also recently announced five other Canadian stores and says it plans more Nordstrom and Nordstrom Rack outlets as it continues its expansion into Canada.
• Meanwhile, Sears Canada Inc. is leaving the Eaton Centre retail space in February and has announced layoffs of more than 1,600 Canadian employees.

Dive Insight

The literal swap of Nordstrom for Sears stores in the heart of Canada’s largest city is an apt metaphor for the fortunes of the two retailers in the country. In fact, Sears Canada Inc.’s efforts to cut its costs factor heavily into the Nordstrom plan for expansion there, as it continues to sell back leases to landlord Cadillac Fairview, which is partnering with Nordstrom in Canada.