- Nordstrom plans to permanently close three Jeffrey designer stores, in addition to the 16 full-line department stores that it’s shutting down in Arizona, California, Colorado, Florida, New Jersey, Maryland, Oregon, Virginia, Texas, and Puerto Rico.
- The Jeffrey stores, which sell luxury designer apparel, are located in Atlanta, New York City, and Palo Alto, California.
- The department store closures are likely to inflict pain on shopping malls. “It is a blow for malls already severely bruised by the crisis and slowdown in retail,” Neil Saunders, of GlobalData Retail, said.
- Visit Business Insider’s homepage for more stories.
Nordstrom announced this week that it will permanently close three Jeffrey designer apparel stores, in addition to the 16 full-line department stores that it plans to shut down.
Nordstrom has 378 locations in total: 116 full-line stores, 247 discount Nordstrom Rack stores, three Jeffrey boutiques, two clearance stores, five Trunk Club clubhouses, and five Nordstrom Local service hubs.
Nordstrom will also shut down all three Jeffrey boutiques, which sell luxury designer apparel. The addresses of the closing stores include:
- 650 A Stanford Shopping Centre, Palo Alto, California
- 3500 Peachtree Road N.E., Atlanta, Georgia
- 449 West 14th Street, New York, New York
Nordstrom is also cutting 16 full-line locations, which are the multifloor department stores that carry its entire assortment of products.
The closures represent about 14% of Nordstrom’s full-line fleet.
The company previously confirmed to Business Insider that the following full-line department stores are closing.
- Chandler Fashion Centre, 3199 W. Chandler Blvd., Chandler, Arizona
- Arden Fair Mall, 1651 Arden Way, Sacramento, California
- Paseo Nuevo, 17 W Canon Perdido St., Santa Barbara, California
- Montclair Place, 5015 N. Montclair Plaza Ln., Montclair, California
- Westfield North County, 270 E Via Rancho Pkwy, Escondido, California
- 3601 The Galleria at Tyler, Riverside, California
- Stoneridge Shopping Centre, 1600 Stoneridge Mall Rd.,Pleasanton, California
- FlatIron Crossing, 21 W. Flatiron Crossing Dr, Broomfield, Colorado
- Waterside Shops, 5489 Tamiami Trail N., Naples, Florida
- Dadeland Mall, 7239 N. Kendall Dr., Miami, Florida
- 1800 Annapolis Mall, Annapolis, Maryland
- Freehold Raceway Mall, 3710 U.S. Highway 9, Freehold, New Jersey
- Clackamas Town Centre, SE 85th Ave., Happy Valley, Oregon
- North East Mall, 1101 Melbourne Rd, Hurst, Texas
- Short Pump Town Centre, 11812 W. Broad St., Richmond, Virginia
- 4000 The Mall of San Juan Blvd., San Juan, Puerto Rico
Analysts have praised Nordstrom’s decision to trim its store fleet.
“We have long since stated that Nordstrom has too many department stores that are in sub-optimal locations,” Neil Saunders, managing director of GlobalData Retail, said.
“Since those shops were originally opened, the demographics in the trade areas and the competitive mix have changed for the worse. The result is that Nordstrom has been left exposed.”
Also, Cowen analyst Oliver Chen said in a note to clients on Wednesday that closing stores “should yield more efficient inventory management, free capex for the more productive local markets, and provide more consistency in-store experience.
“Difficult decisions needed to be made sooner given the acceleration of digital trends combined with traffic losses and risks ahead,” he said.
The closures are likely to inflict pain on shopping malls and neighbouring retailers. Nordstrom’s department stores serve as anchor tenants for many malls. These tenants typically generate a large portion of customer traffic and rent revenue for mall owners.
“Many of the closures will be in secondary markets where the loss will be felt by mall operators and other tenants,” Saunders said. “It is a blow for malls already severely bruised by the crisis and slowdown in retail.”
Chen said retailers overall should expect in-store revenue to drop by 20% to 50% “for the foreseeable future.”
“Unfortunately, Nordstrom’s announcement is likely the first of many as we expect stores may close in 10% or more of shopping centres, and the number of malls may eventually decrease to 800 or less from 1,200,” he said.
Business Insider Emails & Alerts
Site highlights each day to your inbox.