7 July 2020
The Weekly
United States

Nordstrom informed the landlords of both its full-price namesake locations and its off-price Nordstrom Rack stores that it will only pay half of its occupancy costs for the rest of the year. Nordstrom will use store comps as the basis for any possible “true up rent payment, up to a full reconciliation should 2020 sales reach 90% of sales made in that location in 2019,” while also reassuring landlords that the company “will continue to maintain insurance coverage, pay utilities on which we are the account holder, and maintain your building(s) as required by the lease.” Nordstrom also plan to reduce its workforce, as part of a wider strategy to cut overheads, without specifying the number of employees who would be affected by the measures. In 2019, the department store chain’s workforce counted some 68,000 employees, including both full and part-time associates.