Department stores struggle everywhere, it seems! It's a tough, tough business.
I think it is true that we don't have the population to support very many higher end stores -- and the availability of online shopping may make it more complicated. When Nordstrom's opened in Canada, they stopped us from choosing the US site for online orders, and didn't offer the same stock within Canada. Without Angie's "top sale picks" and forum discussions, I wouldn't have bothered with the NAS at all. And more often than I can say, I had in mind to order something but could not get it up here.
Meanwhile you could sometimes get the same item from Bloomingdale's online and they do allow you to order on their site and they deliver up here. There's also, always, Holt's for the higher end stuff. And The Room at the Bay, although that is a sad simulation of what it once must have been. '