Popular Retailer Closing All Stores Across Canada
U.S. retailers seem to have a tough time surviving in the Canadian market.
Popular clothing retailer Express has announced that it's closing its doors in Canada.
Express will be closing all 17 stores across Alberta, British Columbia, and Ontario. This includes Mississauga's Square One location.
Closing sales are set to begin in mid-May, and Canadian customers will subsequently only be able to make purchases through the company's website, mobile app, or a trip to one of Express's 635 stores in the U.S.
The company has stated that these closures are a part of its continued strategic approach to improving profitability and managing and optimizing its store footprint.
“The challenging Canadian retail environment, coupled with unfavorable exchange rates prevented us from meeting the expectations we had when we entered the market in 2011," said David Kornberg, Express, Inc. President and Chief Executive Officer. "Our overriding focus remains to invest in and direct our resources towards those areas that can generate the greatest return, including growing our e-commerce business, relaunching our customer loyalty program, and continuing to build our omni-channel capabilities to allow our customers to engage with our brand and shop wherever, whenever, and however they want."
For the fiscal year ended January 28, 2017, Express Canada had net sales of approximately $45 million in Canadian dollars and contributed a net loss of approximately $6 million in U.S. dollars to the Express, Inc. consolidated financial statements.
"The decision to exit Canada is consistent with our long-term strategy and will have no impact on our operations in the U.S., which remain in a solid financial position," said Kornberg.
Express Canada will officially be deconsolidated from Express, Inc., and the company's Canadian operations will be discontinued.