Nordstrom closing stores and cutting budgets in Seattle
SEATTLE, WA — Retail giant Nordstrom announced store closures and budget cutbacks Wednesday as the company tries to adapt to business lost due to the coronavirus outbreak.
In total, Nordstrom says it will close 16 full-line stores. Which stores will be closed has not been publicly announced, and the company is reportedly still in the process of notifying the affected employees. Nordstrom currently runs 116 full-line stores.
Full-line Nordstroms in Washington includes Seattle’s Downtown Nordstrom, the store in Bellevue Square, and Nordstroms at the Alderwood and Southcenter Malls.
The company says the closures are a result of both the coronavirus and market trends pushing more shoppers online.
“We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations,” said CEO Erik Nordstrom. “The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers.”
According to Nordstrom more than half of their sales involve their website.
In the announcement Wednesday, the company also touted a restructuring to their support roles and corporate organization, which they say will save about $150 million in expenses. The company says the move will allow for “greater speed and flexibility” but did not outline exactly how those roles will be affected.
Nordstrom’s Anniversary Sale event has also been pushed back. The annual sale normally takes place in July. Company officials now say they’re shifting the sale to August to account for stores that may remain closed through July.