Nordstrom Announces Store Closures, Coronavirus Cutbacks

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 include 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.

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Nordstrom closed all of their retail locations on March 17. The company has not yet said when any of their stores will reopen, but says they will be phased in on a market-by-market basis.

When stores do reopen, Nordstrom says they'll implement several new precautions to protect customers and employees from the coronavirus, including health screenings for employees, free face coverings for shoppers and employees, and limiting the number of visitors allowed in stores so they can maintain safe social distancing.