Nordstrom called it quit back in March of this year. In the process, more than 2,500 employees were laid of. They did so because their stores in Canada accounted only for three percent of their sales, in the end. Could they have done better? Is the internet the one to blame? Here is a closer look at what happened.

How can Retailers compete with Internet Sales?

When Nordstrom established itself in Canada, only a decade ago, they already knew the risks of competing with the internet. It would be interesting to look into their marketing strategy, as they never managed to bring a sufficient number of people to walk through their doors. One of the issues of major companies today, such as Nordstrom, is that they forget the traditional tools that they have at their disposition.

When you open a physical store, anywhere that it may be, what you need is to attract customers that live nearby. In rural Canada you can do so through distributing your own newspaper in restaurants, cafés and other locations where people pass through. Indeed, the only way for physical stores to compete with the world of internet is to use the tools that speaks directly to the locals. Even smaller surfaces need to go back to marketing basics, which has never been easier as they can use a newspaper template to prepare their daily, weekly or monthly edition. If big music stars like Harry Styles and Artic Monkeys can bring back cassette tapes for their music, retailers should be wise enough to also turn back time and use newspaper print to advertise locally.

What Else went Wrong?

If marketing teams can look for specific solutions to get people to walk through the doors of their stores, it is hard to prevent the unimaginable, which is exactly what happened during the COVID-19 crisis. Who could have predicted that everyone would have to stay in their own home for long periods of time, besides science-fiction writers? Still it happened, and retailers found themselves unable to respond immediately to the loss of cashflow. What made it worse, is that it only sent shoppers online, to the benefit of the big names that were already powerful, such as Amazon.

Maybe Nordstrom could have survived if they had faced a different economic situation in the years following the pandemic. But the Canadian economy in general is not doing so well, making it even harder for retailers to remain strong in the face of adversity. With the level of inflation that people have had to incorporate into their budget, it is not surprising that clothing retailers are suffering in Canada, but also in many other countries. If you look at the situation in France, as an example, many of the biggest clothing brand name retailers have closed down in the last few years, and more are expected to do so as well.

The reality is that Nordstrom did not benefit from any economic help, in order to implant itself in Canada. But future retailers interested to take their place will have to trust traditional marketing tools, if they intend to conquer new territories in Canada or in any other country.

Are you thinking about starting a windows and doors business in Canada? Look no further! Read on to discover the essential elements you should take into account when making this decision.

Prior to beginning any business venture, you must identify a target market for it. Doing this will enable you to focus on creating an efficient business model and products that will bring in profits. When it comes to windows and doors, you should focus on creating top-notch products that are tailored to the Canadian climate and lifestyle. Offer windows and doors made for every Canadian lifestyle that provide superior insulation, energy efficiency, and aesthetics.

Energy-efficient windows

Energy-saving windows help ease the strain on heating and cooling equipment by keeping your home comfortable throughout the year. Furthermore, they keep electricity bills low – making them a wise investment in the long run.

Window frames made of materials suitable for Canada’s climate conditions are an excellent option. Not only do they cut down on energy usage, but they can also increase your property’s resale value.

Double and triple-paned windows with glazing layers separated by air or gas can help reduce heat transfer through the glass, improving their insulating properties and decreasing summer air conditioning demands.

Spacers between panes of glass are filled with insulating gases like argon or krypton to minimize heat loss and cold transfer. This combination, along with spacers that hold them at proper distances from each other, maximizes their efficiency.

Beautiful views

Canadians who call Canada home are all too familiar with the beauty of a picture-perfect view. That is why windows and doors are essential components for any new or existing home, making selecting the best and most suitable one a top priority. It pays to do some research before handing over money; selecting a company with an established track record and excellent reputation will guarantee you an enjoyable experience. Not only should they provide high quality products, but also excellent service and customer support as well as transparency about their business processes.

Low maintenance

Windows and doors are essential elements of a Canadian home or business. Not only do they keep heat inside during cold weather, but also keep out heat during summers. Furthermore, windows and doors add to the aesthetic appeal of a building by increasing its curb appeal.

A reliable windows and doors company in Canada should offer a diverse selection of products to fit every lifestyle, budget or style. These may include energy-saving windows, high-end window treatments, as well as cutting-edge door systems.

The best windows and doors are created using the most cutting-edge technological advances in window and door design and manufacturing. Not only do they withstand weather elements, but their sleek style also saves consumers money on heating/cooling bills. Furthermore, these products are safe to touch and easy to maintain; some even come with lifetime warranties to guarantee your investment lasts for decades to come.

Affordability

Affordability is a term that describes the cost-effectiveness of goods or services. It’s commonly applied to credit and debt, but also applies to savings, insurance policies, payments and other products which offer value for money.

A household’s ability to afford a good or service depends on their income. If they have more than enough income for an item, then it is considered affordable.

Housing experts typically define affordability as the ratio of housing costs to total household income. Households are considered to have affordability problems if their housing expenses consume more than 30% of their earnings.

Affordability analysis should take into account all housing costs, such as rents or mortgages, property taxes and utilities. It also takes into account transportation expenses since these can rise if houses are isolated in rural areas with inadequate access to jobs or public transit services.

Late last year, it was announced that Canada’s central bank outlook indicator had fallen to 0.07 in the final quarter – a considerable drop considering its last indicator of 1.74.

According to recent statistics, as many as 70% of Canadian businesses point to the mounting inflation rates as a likely cause towards a potential recession, which has been resting on the horizon ever since the challenges throughout 2020 and 2021.

Specifically, wage growth has been indiscriminately weak throughout 2022 and is suspected to stay weak this year – which is one of the strongest reasons behind the negative outlook. Statistically, 63.91% of Canadian consumers have said that they plan to reduce their spending, with another 50.04% postponing their purchases indefinitely.

Customer Loyalty VS The Landscape

For firms and businesses that have built up a considerable amount of faithful consumers – particularly business-to-business companies, who rely on b2b loyalty to thrive in the market – it’s fair to say that sales expectations are weakening, but this is not necessarily because the loyalty has frayed. In the midst of an uneasy economic climate, however, customers are more likely to move to a business offering similar products or services for less money – despite the fact their quality and value are not as good as the original company.

In this way, the relationships that have been built up over the company’s tenure are at more risk of fading out, not at the fault of the company but rather the overall landscape that that company finds itself in. That is why – at the beginning of 2023’s Q1 – it is essential for Canadian businesses to rethink their loyalty strategies in order to stay afloat.

A Loyalty Reshuffle

In today’s business climate, over 90% of companies have some sort of loyalty program, but not all of them will actually be beneficial for the consumer. After all, out of that 90%, at least 77% of loyalty programs will fail if they only rely on a transactional model – flash sales, rebates and discounts. In 2023, it is essential that businesses examine their strategy closer and ensure that they give their consumers a reason to stick with them in the long term.

As mentioned previously, 63.91% of Canadian consumers are simply reducing their spending, meaning there is plenty of opportunity to keep the business afloat – while also putting in measures to slowly boost that spending over time. This can be done in a multitude of ways, not least a points-based rewards system, brand alignment and solid educational marketing that can engage consumers outside of the business setting.

Prospects For The Future

In many cases – and especially for b2b companies – retaining customers is far more important than acquiring new customers, not least due to the cost and time which goes into getting new customers and a new audience.

That is not to say the strategy won’t be challenging given the overall business outlook, but keeping those customers is important not only for survival but for when prospects begin to brighten, and the market finds its feet again. If businesses recognise the climate and make the decision to rethink their potentially floundering loyalty scheme, then when the time comes, and the consumers want to increase their spending, that is when the company will begin to reap their own rewards.