Nordstrom Inc. shared additional actions the retailer is taking to combat the effects of the COVID-19 pandemic, including permanently closing 16 stores.
“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 Inc. “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.”
Nordstrom is also restructuring its regions, support roles and corporate organization for greater speed and flexibility. This restructuring is expected to result in expense savings of approximately $150 million, or 30% of the company’s previously announced plans for net cash reductions of more than $500 million in operating expenses, capital expenditures and working capital. These actions, combined with its initial savings plan of $200 to $250 million, represent a reduction in non-occupancy related overhead expenses of approximately 20%.
Nordstrom plans to reopen stores in a phased, market-by-market approach where allowed by local authorities and with the health and safety of employees, customers and communities as a priority. Given this phased approach, the company is shifting its Anniversary Sale event from July into August.
As it re-opens stores, Nordstrom is making the following updates to help keep customers and employees safe and healthy:
- Conducting health screenings for employees
- Providing face coverings for employees and customers
- Taking steps to allow for social distancing of six feet or more, including limiting the number of customers and employees in the store
- Increasing cleaning and sanitization
- Modifying the fitting room experience
- Continuing to offer contactless curbside services at full-line stores
- Altering hours of operation
- Pausing or adapting high-touch services and customer events
- Keeping tried on or returned merchandise off the salesfloor for a period of time
