Six years after entering Canada, Express is quitting the market.
Express had only a small footprint in Canada with a total of 17 stores. In the latest fiscal year, which ended Jan. 28, 2017, the company's Canadian sales totaled about US$34 million, less than 2% of its $2.19 billion in total revenue for the year. Express said that the Canadian operation contributed a $6 million loss for the year.
The men's and women's apparel retailer said the move would leave it with 635 stores in the US. According to the eMarketer Retail & Ecommerce database, Express’s per store sales (including both the US and Canada) averaged $2.67 million in the latest year.
The company cited “the challenging Canadian retail environment” as a driver for the decision, as well as unfavorable exchange rates.
eMarketer expects total retail sales in Canada to edge up just 1.7% this year to $415.73 billion. That growth rate is expected to remain essentially flat for the next several years.