Nordstrom to permanently close 16 stores

Nordstrom has said that it will permanently close 16 full-line stores as a measure to strengthen business for the long-term. The company is facing the effects the COVID-19 pandemic has had on its retail business. It will incur non-cash impairment charges associated with its store closures.

“We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations," explained chief executive officer, Erik Nordstrom, in a statement. "The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers."

Nordstrom stores have been temporarily closed since March 17. The retailer has scaled its e-commerce business throughout the crisis. Online sales represented a third of 2019's business, including its off-price Nordstrom Rack online sales which exceeds 1 billion dollars.

The company said that its decision to close 16 brick-and-mortar stores to meet new changes in consumer expectations.

"More than ever, we need to work with flexibility and speed," Nordstrom continued. "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.”

Picture:Nordstrom press room