Dive Brief:
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Nordstrom is closing two full-line stores this spring, the company confirmed by email Wednesday. The anchor at the Galleria Dallas Mall in Texas will close May 16 and the anchor at the Christiana Mall in Delaware will close April 30.
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The closures come amid expansion of Nordstrom’s off-price business, with plans to open 23 Rack stores in 2026, after opening 22 last year, a spokesperson said by email.
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Nordstrom no longer releases earnings reports since going private last year. But on Wednesday the department store said 2025 total sales rose 7% year over year to nearly $16 billion, with the highest comps in over a decade.
Dive Insight:
There is solid evidence that Nordstrom has benefited from the trouble at Saks Global, even before the luxury conglomerate landed in bankruptcy court at the start of the year. In addition to picking up sales from Saks Fifth Avenue and Neiman Marcus, the Seattle-based department store has hired away some of Saks Global’s top merchants.
On Wednesday Nordstrom said last year’s top-line strength was achieved across both banners and online as well as in stores. But any boost it may get from the Saks declines may not be enough to sustain its entire full-line fleet. Nordstrom instead is betting on its off-price Rack business, which CEO Erik Nordstrom has repeatedly called a growth engine, key to customer retention and the biggest driver of customer acquisition.
The most recent move is the latest in a line of several full-line closures in recent years. As the pandemic eased the company decided not to reopen 16 stores, later also shuttered its entire Canadian business and then joined several retailers in leaving San Francisco.
The downsizing is necessary for the department store to thrive, even with obvious merchandising improvements in stores since the Nordstrom family regained control, according to Nick Egelanian, president of retail development firm SiteWorks. The retailer still runs two other full-line stores in the Dallas area, at NorthPark Center and Stonebriar Centre, as well as several full-line and Rack locations throughout Texas, but is closing its only full-line store in Delaware.
“We believe we’ll be best able to serve customers in both regions by leveraging our surrounding stores and through our digital channels,” the Nordstrom spokesperson said. “Decisions like this are never easy, and we understand the impact they have on our team members. We’re committed to taking care of our employees through this transition, including supporting those who are interested in finding another role within Nordstrom.”
