This May 9, 2013 photo shows a Nordstrom sign at a shopping mall in Brea, Calif. THE CANADIAN PRESS/AP, Jae C. Hong
January 15, 2014 - 9:16 AM
TORONTO - Nordstrom Inc. says it will open a three-storey store at Toronto Eaton Centre by the fall of 2016 in the high-profile location that has been occupied by Sears Canada (TSX:SCC).
Construction on the new Nordstrom store is set to begin in March.
It's the latest Canadian location to be announced by Seattle-based Nordstrom (NYSE:JWN), which has picked up several department store spaces vacated by Sears.
Cadillac Fairview manages the Toronto Eaton Centre as well as prominent malls in Vancouver, Calgary and Ottawa that will have Nordstrom stores.
"Our properties were the first to welcome Nordstrom to Canada, and we're thrilled to continue our partnership with Nordstrom," said John Sullivan, Cadillac Fairview's president and chief executive.
"We believe it takes foresight and innovation to bring popular retail brands like Nordstrom to our centres, which in turn attracts enthusiastic shoppers."
The Toronto Eaton Centre is one of the city's biggest tourist attractions, as well as a major shopping mall for area residents.
Sears has been occupying a space that was originally home to the flagship Eaton store, before the family-controlled national Canadian chain went bankrupt more than a decade ago.
However, Sears Canada — a subsidiary of U.S.-based Sears Holdings Corp. (Nasdaq:SHLD) — has been downsizing in response to changing consumer shopping habits and increased competition.
It has long been speculated that Nordstrom would be interested in the Toronto Eaton Centre location, one of several that Sears has agreed to vacate in recent years in return for large payments from its landlords.
Last summer, Sears announced would receive $191 million cash for agreeing to leave the Yorkdale Shopping Centre in Toronto and Square One Shopping Centre in Mississauga, Ont., by March 2014. It could also receive an additional $54 million if the landlord exercises an option on the Sears store at the Scarborough Town Centre.
News from © The Canadian Press, 2014