Nordstrom Shifts to Off-Price Expansion

0:00Department stores like Nordstrom are facing tough times with more store closures across the industry. Nordstrom just announced it will shut down two full line locations in spring 2026, one at the Galleria Dallas Mall in Texas on May, 16th and another at the Krishiana Mall in Delaware on April 30th. These moves will leave Dallas with just one full Nordstrom and two racks, while Delaware loses all full line stores, keeping only a single rack. Meanwhile, the company is doubling down on its off-priced Nordstrom rack chain. Nordstrom plans to open 23 new rack stores in 2026, matching the pace of 23 in 2024 and 22 in 2025. Rack has become the real growth driver, pulling in new customers and strong returns even as full-price sales soften. Retailers announced 67% more closures in 2025 than the year before, according to Core Sire Research, thanks to economic, uncertainty and booming e-commerce.

1:02Nordstrom's strategy fits the shift, especially after going private in early 2025 through a $6.25 billion deal with the Nordstrom family taking a 50.1% stake alongside Mexico's El Porto Deliver Pool. Foot traffic at Nordstrom rose 3.3% in early 2025, while rivals like Sachs and Neiman Marcus dropped around 6%. The company's last public earnings for late 2024 showed full line sales down 3.7%, but rack up 1.2%. Percent, highlighting the pivot to value shopping, as the retail world grapples with low growth and changing habits, Nordstrom's focus on flexible off-price expansion positions it to navigate these shifts and keep drawing in shoppers, local news powered by AI. This is Durham News today.