Did you see headlines saying every 10 minutes one store closes in the United States?
While there’s no real data to confirm the attention-grabbing headline, considering the number of recent closures, it does sound plausible. If true, it signals a major retail crisis.
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Why are retailers having such a hard time?
Many of them, even large chains, are not being able to deal with the current economic challenges, as they are yet recovering from the disaster that the Covid pandemic brought upon them.
So many brick-and-mortar stores were swiped by the pandemic, and what’s worse, even before Covid, they had been struggling to survive the so-called “Amazon effect.”
Both smaller operators and large national chains are dealing with persistent inflation and increasing rates on debt obligations. It is projected that more than 15,000 stores across the country will shut their doors this year, which is more than double the number that closed last year.
Among the biggest names that have recently closed multiple stores or even gone bankrupt are CVS, Kohl’s, Walmart, JCPenney, At Home, GameStop, Macy’s Rite Aid, Joann, and many more.
That’s right — all kinds of retailers and businesses are impacted by these challenging times, from popular and luxury brands, to department stores, to grocery and supermarket chains. All of them are fighting to survive.
Taking all this into account, it’s no surprise that one iconic mall retailer has closed two more stores.
Nordstrom won the hearts of many shoppers due to its customer-centric culture and generous return policy.
Image source: Shutterstock
It all started with one shoe store, more than a century ago
Nordstrom has a huge base of loyal customers for several reasons, among which consumer-focused experience is the most praised. It places a lot of effort on making service one of its strongest points, which seemed to have benefited both the company and customers.
The fashion giant is often lauded for its personalized shopping experience, customer-centric culture, and amazingly generous return policy. It’s often mentioned on social media, with fans claiming the retailer is extremely flexible, making every return hassle-free.
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Nordstrom now operates around 350 stores, but it all started back in 1901 when the first shoe store opened at Fourth and Pike in Seattle. That’s right, the first one was a shoe store.
John W. Nordstrom, a young and hardworking immigrant from Sweden, worked in mines, went to Alaska in search of gold, and then was offered and accepted a partnership by Seattle shoemaker Carl F. Wallin.
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The business grew, and by 1960, the Seattle shoe shop became the biggest across the nation, running eight locations in Washington and Oregon. In 1971, the company went public, and two years later, Nordstrom was recognized as the biggest fashion specialty store on the West Coast.
Nordstrom closes two more mall locations
Despite its capacity and customer loyalty, Nordstrom is not immune to the current economic challenges and alarming customer trends, which is why over the last five years, it has closed more than a dozen stores.
Nordstrom’s latest store to close after nearly 15 years is the one at Santa Monica Place, California.
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“We believe we’ll be best able to serve customers in the area by leveraging our surrounding stores and through our digital channels,” Nordstrom said in a statement, according to 4NBC Los Angeles.
The three-level store, often praised for its location, which is two blocks from the beach, will have its last business day on August 26.
Nordstrom has not yet revealed how many people might lose their jobs, but added it will help them find another position within the company.
Earlier in June, Nordstrom confirmed it would close another of its mall locations this summer. It is the store inside the Saint Louis Galleria in Richmond Heights, Missouri.
A Nordstrom spokesperson shared that the closure is part of a wider strategy to focus on nearby locations and digital operations, reported 5 On Your Side.
About 135 employees should be impacted by the closure of the Galleria locations, and some of them will have a chance to transfer to other Nordstrom stores.
Nordstrom also operates two Nordstrom Rack stores in the St. Louis region, one at 1585 South Brentwood Blvd. in Brentwood, and another at 100 Highlands Blvd. Drive in Manchester.