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    Breaking News

    Nordstrom Will Close 16 Stores

    Shares strategy for reopening in the coming weeks.

    Nordstrom Will Close 16 Stores
    The exterior of Nordstrom NYC.
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    Beauty Packaging Staff05.06.20
    On May 5, Nordstrom announced plans to permanently close 16 full-line stores and restructure its operations in an effort to minimize the impact of the coronavirus crisis. The company hopes these actions will strengthen the business for the long-term.
     
    The restructuring is expected to result in expense savings of approximately $150 million. These measures, combined with the company's initial savings plan of $200 to $250 million, represent a reduction in non-occupancy related overhead expenses of approximately 20 percent.
     
    “We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations. The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers,” said Erik Nordstrom, CEO of Nordstrom Inc. “More than ever, we need to work with flexibility and speed. Our market strategy helps with both, bringing inventory closer to where customers live and work, allowing us to use our stores as fulfillment centers to get products to customers faster, and connecting digital and physical experiences with services like curbside pickup and returns.”
     
    Plans to Reopen
     
    Despite closures, Nordstrom stores remain a core part of the business. Nordstrom plans to reopen stores in a phased, market-by-market approach where allowed by local authorities. The company did not give exact dates for when stores will commence reopening.
     
    The company will make several updates to its stores and the way it serves customers, including:
     
    • Conducting health screenings for employees.
    • Providing face coverings for employees and customers.
    • Taking steps to allow for social distancing of six feet or more, including limiting the number of employees and customers in the store.
    • Increasing cleaning and sanitization.
    • Modifying the fitting room experience.
    • Continuing to offer contactless curbside services at its full-line stores.
    • Pausing or adapting high-touch services and customer events.
    • Keeping tried on or returned merchandise off the salesfloor for a period of time.
    • Altering hours of operation.

    More Retail News
     
    Last week, Macy’s Inc. announced plans to reopen 68 US stores on May 4, in states that have loosened coronavirus lockdowns, with more openings on the way. Also, Saks Fifth Avenue recently announced it is aiming to reopen at least some of its 41 stores, including its flagship on Fifth Avenue in Manhattan, by June 1.
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