In recent times, physical store closures in the United States have increased alarmingly. Some headlines even claim that every ten minutes a store shuts its doors, which reflects a complicated scenario for traditional retail.
One of the country's most iconic chains has recently announced the closure of two of its stores. This is Nordstrom, a company with more than a century of history and recognized for its customer service and personalized experience. This measure is part of a context where physical stores face enormous economic challenges, worsened by the pandemic and competition from e-commerce.
The unexpected fall of Nordstrom
Nordstrom began its journey in 1901 as a small store specializing in footwear in Seattle and was founded by John W. Nordstrom, a Swedish immigrant. Over the years, the company grew to become one of the major references in the fashion sector on the West Coast. Currently, it has around 350 stores, but the current situation has forced it to make difficult decisions.
The Covid-19 pandemic was a hard blow for retail, as many physical stores closed temporarily and some never reopened. Before the pandemic, the "Amazon effect" had already changed shopping habits, leading to a decline in visits to shopping malls. Inflation and rising interest rates have further worsened the situation for many retailers, with projections that by 2025 more than 15,000 stores will close across the country.
New business strategy to try to overcome the problems
Nordstrom has closed more than a dozen stores in the past five years, and now it will also close its store at Santa Monica Place, California, after almost 15 years of operation. This store, located two blocks from the beach and with three levels, will permanently close its doors on August 26. The company has stated that it will continue serving its customers at other nearby stores and through its digital platforms, according to 4NBC Los Angeles.
Additionally, this summer Nordstrom confirmed the closure of another store at the Saint Louis Galleria mall in Richmond Heights, Missouri. This decision is part of a strategy to focus efforts on closer stores and online commerce. It is estimated that around 135 employees will be affected by this closure, although the company has assured that it will try to relocate many to other branches.
Nordstrom also keeps two Nordstrom Rack stores in the St. Louis region, which will continue operating as part of its retail network. The company, which has always been known for its flexible return policy and customer service, now faces the challenge of adapting to a market in full transformation.
These closures are just a reflection of a broader phenomenon in American retail, where big names like CVS, Kohl’s, Walmart, and Macy’s are also reducing their physical presence. Digitalization and changes in consumer habits are setting the path toward the future, although at the cost of closing many traditional stores.