[ad_1]
An Extra Sign of Rapid Landscape Shrinkage for Traditional Retailers: Nordstrom has announced plans to close its Northgate site, one of the oldest in the family business, this summer.
The approximately 170 employees at Northgate have learned the new Friday morning, according to a spokesman for Nordstrom, who added that the Northgate Nordstrom Rack will remain open. The company is "confident that we will be able to offer new roles to each employee," spokeswoman Emily Sterken said in an e-mail.
The closure, scheduled for August 9, comes amid a major redevelopment of the Northgate Mall as well as significant challenges for Nordstrom. The Seattle-based retailer is shutting down underperforming stores at a rate of two per year to combat stiff competition from online retailers and discount stores, as well as the declining popularity of shopping centers.
In May, Nordstrom announced a sharp drop in first-quarter earnings and a drop in revenue, due in part to what co-chairman Erik Nordstrom termed "performance-related performance failures." customer".
"By examining our business needs in the Seattle market and the Northgate Mall's future plans as it prepares for a major transformation, we have made the decision to close our Northgate Mall," the company said in a statement. Friday about the closure. which was reported for the first time by the Puget Sound Business Journal. "This decision will allow us to focus on serving customers at nearby Nordstrom stores, including our Northgate Nordstrom Rack, as well as online."
The statement said Nordstrom has "made significant investments" in renovating Seattle's downtown and Alderwood shopping center.
The retailer also continues to open new locations in a few key urban markets, including a new flagship store that is scheduled to open in October in New York.
But most news about Nordstrom has been grim. In addition to a difficult market, the company has made several tactical mistakes, including the failed launch of an update of its loyalty program in early 2019. Since 2015, the stock price of Nordstrom has been reduced by more than half, despite efforts to slow down the decline with major share buybacks. At Friday's closing, the Nordstrom share price was $ 31.67.
The closing of Nordstrom is only the latest among Northgate's major retailers, with new residential and office buildings and a training space for the new National Hockey League team. the city.
Last October, J.C. Penney announced the closure of its Northgate site in 2019. And earlier this year, Macy's announced the closure of its Northgate site this summer.
Nordstrom's location in Northgate has been a key part of the local retail landscape since 1950, when it opened in the brand new Northgate Mall, which is often described as the premier shopping center in the United States.
[ad_2]
Source link