Mississauga’s Heartland Centre might have to get creative to fill Nordstrom vacancy: expert
Published March 3, 2023 at 12:00 pm
Nordstrom’s summer departure from Canada’s retail landscape will leave massive holes in malls like Mississauga’s Heartland Centre that some analysts say landlords will have to get creative to fill.
Nordstrom announced on Monday that all of its Canadian stores are closing, including those at the Heartland Centre and Sherway Gardens in Etobicoke, with the fashion retailer saying it does not foresee a profitable future in Canada.
If malls want to find similar tenants to Nordstrom, industry insider Tamara Szames says they might look to department store rivals Hudson’s Bay, Simons or Saks Fifth Avenue.
But Szames, the executive director and industry adviser of Canadian retail at the NPD Group research firm, says such companies are heavily engaged in the apparel business, which has yet to recover from the pandemic.
When malls hunt for Nordstrom replacements, she thinks they are more likely to eye food or entertainment businesses that will draw in new customers.
Nordstrom’s six Canadian stores have leases that last for between seven and 10 years more, while its bargain-centric Rack brand has seven stores with between five and eight years left on their leases.
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Across the country, some 2,500 people will lose their jobs because of the closure. It is expected that all of Nordstrom’s Canadian stores will close by the end of June and its e-commerce site will cease operating immediately.
The Mississauga location, which opened in 2018, was a Nordstrom Rack – an off-price location that has been selling a wide variety of fashion apparent, accessories and shoes at discount prices.
Nordstrom first announced plans to expand to Canada back in 2012 and opened its first store in Calgary at CF Chinook Centre in September 2014.
With files from The Canadian Press
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