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Clothing retailer Nordstrom said earlier this week that it planned to permanently close 16 of stores as the coronavirus pandemic keeps people home and shopping online.
The company said the closing stores are all full-line, or multi-floor locations with the entire product assortment, and that it will incur non-cash impairment charges for the closures.
NORDSTROM CLOSING 16 STORES ON CORONAVIRUS FALLOUT
Nordstrom confirmed in a report Business Insider that the following locations will close:
- 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.
Nordstrom Chief Executive Officer Erik Nordstrom said in a press release that the company has been investing in digital and physical capabilities to keep pace with changing customer expectations in the COVID-19 shutdown.
APPLE TO REOPEN SELECT US STORES NEXT WEEK
“The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers. More than ever, we need to work with flexibility and speed,” he said. “Our market strategy helps with both, bringing inventory closer to where customers live and work, allowing us to use our stores as fulfillment centers to get products to customers faster, and connecting digital and physical experiences with services like curbside pickup and returns.”
Nordstrom also said it is restructuring its regions, support roles and corporate organization in a move it expects can result in expense savings of approximately $150 million.
At the same time, the retailer is rolling out safety measures to begin reopening some of its other stores, which have been shut down since March 17. The openings will take place in a market-by-market approach with health screenings for employees, face coverings provided for employees and customers, and steps to enforce social-distancing rules.
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Traffic passes the Nordstrom Inc. store during a media preview in New York, U.S., Photographer: Mark Abramson/Bloomberg via Getty Images
Nordstrom has 378 locations including 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. The closings make up 14 percent of its full-line fleet.
The announcement highlights an impact on the clothing industry beyond Nordstrom. Neiman Marcus filed for Chapter 11 bankruptcy protection Thursday while J.C. Penney is reportedly preparing to file for bankruptcy protection as soon as next week.
Nordstrom did not immediately respond to a request for comment from FOX Business.