Toronto

Nordstrom ready for business in 'vibrant and diverse' Toronto

Nordstrom has finally opened its doors in Toronto's Eaton Centre, but can it avoid a Target-style catastrophe?

New Eaton Centre location has a cocktail bar, restaurant, phone-charging stations

Nordstrom has opened its new location in the Toronto Eaton Centre, the second largest in Canada. (CBC News)

The windows are squeaky clean, the mannequins are draped in fresh-off-the-runway attire and the bar is fully stocked. 

Nordstrom has finally opened its doors in Toronto's Eaton Centre. 

"Toronto is the fourth largest city in North America. It's an incredibly, vibrant, diverse community. Those are the kind of places you want to do business in," said president of Nordstrom stores, Jamie Nordstrom.

The luxury department store took its time testing out its Canadian market and slowly opening up locations around the country. (CBC News)

The luxury department store has taken its time testing out its Canadian market and slowly opening up locations around the country. 

The slow and deliberate move into the Canadian market is what will help them avoid a Target-sized catastrophe, one expert says. 

Target decided to close up shop on all 133 of its stores after it failed to impress Canadian customers who were frustrated over the prices and lack of merchandise in the store.

Jamie Nordstrom says Toronto is diverse, fashion-forward and ideal for business. (CBC News)

"They've definitely taken their time in terms of developing it," says Maureen Atkinson, senior partner at a global consulting company, JC Williams Group.

Nordstrom has been slowly ironing out any issues and problems that pop up in their other Canadian locations before their big Toronto debut, according to Atkinson, and is focusing on making sure the merchandise that Canadian customers expect to see is there when they debut. 

"I think Nordstrom has realized that Target came in with a big bang but didn't deliver."

115 years old

The company certainly sounds confident. 

"We've been doing this for a while. We're a 115 years old now," said Jamie Nordstrom. "We've opened a lot of stores across North America. The prediction is we're going to be here in business in Toronto for a long, long time."

Nordstrom faces a lot of competition in the Canadian market with department stores like Saks Fifth Avenue, The Bay and Holt Renfrew expanding across the country. (CBC News)

The Eaton centre location is the fourth of a series of stores due to open across Canada in the coming years and the second largest in the country, after the Vancouver location. 

Another GTA location will open in Yorkdale Shopping Centre in October with more locations planned for Edmonton, Calgary and other GTA shopping centres in the next couple of years. 

According to Atkinson, the Toronto Eaton Centre location, previously home to Sears Canada, is the company's "flagship Canadian store."

"We've been looking forward to this a long time. Toronto is one of the cities in North America that we think is one of those fashion-forward cities," said Jamie Nordstrom. 

Fierce competition

Nordstrom does have its work cut out for them. When the store first announced plans to expand into Canada, there was no Saks Fifth Avenue here. 

The Nordstrom location in Toronto includes a cocktail bar, a restaurant and phone-charging stations throughout the store. (CBC News)

In February, a mere few blocks away from the Nordstrom location at Eaton Centre, Saks Fifth Avenue, owned by iconic Canadian department store company Hudson's Bay, opened its first Canadian location. 

In recent years, the Bay has poured millions into renovating its stores and catering to a more upscale market. 

Holt Renfrew and and Quebec-based retailer Simons have also expanded across the country in recent years. 

The new Toronto Eaton Centre Nordstrom location carries higher-end brands and caters to a more upscale market. (CBC News)

The crowded market proves that there is an appetite for luxury department stores in Canada, says Nordstrom representative, John Bailey. 

"We like competition. It benefits the customer and helps us raise our game," he said. "We're mindful of the fact that we need to be at our very best here in order to be able to compete."

A shopping experience

The Nordstrom location in Toronto includes a cocktail bar, a restaurant, spacious dressing rooms, as well phone-charging stations throughout the store. 

Global consulting expert Maureen Atkinson says Nordstrom has learned from the mistakes Target made in its expansion into Canada. (CBC News)

"It's a place you can go and hang out," says Atkinson. "They're trying to expand the amount of time people spend in a store because obviously the more time you spend, the more likely it is you will spend money."

Atkinson says Canadians are expecting to see a Nordstrom similar to the one they're used to in the United States.

"This is a store that is well-known by Canadians and [they] don't want a watered down version. I think they'll be looking for the same kinds of things," she said. 

A cocktail bar in the middle of the Nordstrom store is one way to make sure customers stick around and shop more, says consulting expert Maureen Atkinson. (CBC News)