Nordstrom store shuts doors for good with more closures on the way after CEO makes admission about its future

NORDTROM is pulling out of two prime shopping centers this week, and more uncertainty looms after a blunt warning from its CEO.

Shoppers in Missouri and California will be the first to feel the hit, with both stores shutting before the end of August.

AFP

Nordstrom is shutting two major stores this week[/caption]

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Shoppers in Missouri and California will be the first to feel the hit (stock image)[/caption]

The Saint Louis Galleria in St. Louis will lose its Nordstrom location on August 24, while Santa Monica Place in California will see its store close on August 26.

The Santa Monica shop has long anchored the Third Street Promenade district, but the area has been struggling since the pandemic.

In Missouri, company officials said renewing the lease at the Galleria would not be profitable.

A Nordstrom spokesperson told USA Today: “We believe we’ll be best able to serve customers in each region by leveraging our surrounding stores and through our digital channels.”

No replacement has been lined up for the Santa Monica store, but in St. Louis, Dick’s House of Sports, a retail store, is expected to take over the spot, according to local reports, CBS local affiliate KMOV reported.

The company has promised to help employees affected by the closures find new roles.

“Decisions like this are never easy, and we understand the impact they have on our team members,” Nordstrom said.

In St. Louis, 135 workers will lose their jobs, although they were given a separation plan that offers financial assistance.

The Galleria closure will not affect the nearby West County Nordstrom, or Nordstrom Rack stores in Brentwood and Manchester, which remain open.

But at the same time, the company’s leadership is raising alarms about the future in Portland, Oregon.

Mayor Keith Wilson told a community meeting he had spoken directly with Nordstrom CEO Erik Nordstrom about the city’s retail crisis.

“I met with Erik Nordstrom the other day, and he says, ‘Keith, I don’t know how long we can continue to operate in Portland,’” the mayor said, according to Oregon Live.

The comments come as Portland has seen major national chains exit amid rising theft and safety concerns.

Target closed three stores in the city last year, while outdoor retailer REI shut its Pearl District location, citing repeated break-ins.

Macy’s abandoned its downtown flagship back in 2017, and theft reports have also plagued the Nordstrom Rack location downtown.

During early 2023, that Rack store was one of the city’s top three businesses for burglary and theft reports.

A Nordstrom spokesperson responded to concerns, saying there are currently “no planned changes” to the company’s Portland stores.

“We continue to work with the city to explore how we can best serve our customers and the Portland community,” the statement added.

Nordstrom currently has a full-line store downtown, a Nordstrom Rack nearby, and another Rack at Cascade Station.

The chain already closed its Clackamas Town Center store in 2020, one of 16 Nordstrom shops axed nationwide during the pandemic.

Despite the uncertainty, Nordstrom recently reported strong sales, with full-year comparable sales up 3.6%.

In March, the retailer announced that Nordstrom sales increased 5.3% year over year, while Nordstrom Rack sales rose 3.5%.

It also unveiled plans for 24 new Rack locations, set to open beginning in fall 2025.

The future of the business shifted in May 2025, when Nordstrom was taken private in a $6.25 billion deal.

The Nordstrom family now owns 50.1% of the company, with Mexican retailer El Puerto de Liverpool holding the rest.

Across the US, Nordstrom says it still operates more than 350 stores, including Nordstrom, Nordstrom Rack and Nordstrom Local.