Nordstrom to close 16 stores, restructure in cost-saving push

Apparel retailer Nordstrom Inc said on Tuesday it would close 16 stores and restructure its operations in an effort to cut costs and weather the impact of the Covid-19 pandemic.

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

“More than ever, we need to work with flexibility and speed. 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.”

The company said it is restructuring its regions, support roles and corporate organization, which will save $150 million in costs.

The retailer will also incur non-cash impairment charges associated with the store closures. In March, Nordstorm had suspended its quarterly dividend and pulled its 2020 outlook.