The historic retail chain, operating as a mall anchor for over a century and a half, has confirmed the closure of 14 additional stores, bringing its total store reductions to 32 since late 2024. The move underscores deepening challenges across the consumer retail and real estate sectors.
- 14 additional store closures announced by the 168-year-old department store chain
- Total store reductions now at 32 since late 2024
- Approximately 450 employees affected across closed locations
- JWN stock declined 3.2% following the announcement
- SKT and SPR stocks dropped 1.8% and 2.1% respectively
- Closures concentrated in underperforming malls across Midwest and Southeast
The 168-year-old department store chain, identified by ticker JWN, has announced the closure of 14 more locations, primarily in underperforming shopping malls across the Midwest and Southeast. This follows a prior round of 18 closures in late 2024, increasing its total store reductions to 32 in just over a year. The company cited declining foot traffic, shifting consumer preferences toward e-commerce, and rising lease costs as primary drivers behind the restructuring. The closures affect approximately 450 employees, with the company offering severance packages and outplacement services. The impacted stores are located in regional malls previously anchored by the chain, including properties in Cincinnati, Nashville, and Jacksonville. These closures represent a significant contraction in the chain’s footprint, reducing its total retail space by nearly 20% since 2023. The actions are expected to impact mall operators and landlords, particularly those with a concentration of retail space in secondary and tertiary markets. Real estate firms managing properties where these anchors are located—such as SKT and SPR—may face downward pressure on rental yields and occupancy rates. The move also signals continued weakness in physical retail, even for legacy brands with strong brand recognition. Stocks in the retail and commercial real estate sectors reacted to the news, with JWN dropping 3.2% in early trading, while SKT and SPR saw declines of 1.8% and 2.1%, respectively. Analysts suggest the closures could prompt further reassessments of mall-based retail models and may accelerate consolidation among regional mall operators.