The American luxury department store chain, Nordstrom, is busy with big changes. Two of the department stores will close down by next week, in merely days. Consumers are encouraged to check the list of store closures to see if the store near them will be affected. Changes like these are not just a sad blow for consumers, but also for the employees. However, the retailer is already focusing on that part of the situation.
Nordstrom Taken Private
The founding family of Nordstrom has plans to take the department store private, meaning several employees will lose their current positions at the store. Within a week, two of the stores at the Nordstrom location are set to be closed. The specific locations for these two stores are Saint Louis Galleria in St. Louis, Missouri, and Santa Monica Place in Santa Monica, California.
The first location, in Missouri, is set to close in a few days, on August 24. The second store will be closing next week Tuesday, August 26. This information was confirmed by a Nordstrom spokesperson. Also, the Santa Monica location, is situated in the capstone mall of the Third Street Promenade shopping district. This store has been decreasing fortunes since the COVID-19 pandemic, that has a massive impact on various businesses.
It has been stated that the lease with the Galleria would be an unprofitable option should it be renewed. This was shared to St. Louis FOX affiliate KTVI by a company spokesperson. In addition, one of the Nordstrom spokespersons said that they believe to serve consumers in each region through leveraging their surrounding stores. They will also do this by focusing on the company’s digital channels.
Department Store Chain sales
The department retail store chain indicated strong results when its earnings were reported. These specific earnings are for the fourth quarter of the fiscal year 2024 in March. The Comparable sales for the company increased by 4.7% compared to the fourth quarter of the previous fiscal year. According to the earnings release, the Nordstrom sales increased by 5.3% year over year, and Nordstrom Rack sales increased by 3.5% year over year. The complete comparable sales for the year increased by 3.6%
In addition, the company has a list with 13 Nordstrom Rack locations that are expected to open in “Fall 2025” or later in the release. Also, n additional 11 new Nordstrom Rack stores has been subsequently announced to open.
Impact on the store
The department store is not officially a private owned company, after a deal of $6.25 billion was finalised in May 2025. This is the deal where the Nordstrom family and Mexican retailer El Puerto de Liverpool obtained the company. The family now managed the majority stake of 50.1% in the company. On the other hand, it was confirmed in December 2024 in a news release, that Liverpool owns the remaining shared.
As indicated on the company’s website, it consists of more than 350 Nordstrom, Local and Rack locations. Moreover, the company made a statement regarding the impact the closures may have on employees. The aim of the retailer is to transition employees from the affected stores to other available locations. The company will try its best to assist employees where it can, because they value the work they have been doing and want them to prosper.
A spokesperson said that decisions like this is never easy, but sometimes one has to make the difficult decisions. The company takes into consideration the impact this big decision may have on the team members. The spokesperson further alluded to the fact that the company is committed to taking care of its employees through the transition. This includes with supporting those employees who may be interested in finding another role within the location or even if it is not nearby.