TORONTO -- Luxury retailer Holt Renfrew says it will close its stores in Ottawa and Quebec City at the end of January next year.

The company says the Ottawa store has 72 employees, while the Quebec City store has 85.

The move comes as Holt Renfrew is focusing expansion plans on its key markets in Vancouver, Calgary, Edmonton, Toronto and Montreal.

Holt Renfrew is gearing up to face increased competition with the arrival of U.S. retailer Nordstrom in Canada next month.

The Canadian retailer says it will expand and renovate its Bloor St. store in Toronto, including the addition of a new facade.

Stores in Vancouver and Calgary will also be updated.