Key Takeaways:
– Nordstrom is closing its corporate offices in Chicago and Los Angeles due to low usage
– The mass majority of employees will move to remote roles with offered relocation to HQ in Seattle
– Nordstrom anticipated to remain present in these cities through in-store meetings and gatherings
– This move comes amidst family talks of taking the company private
Seattle-based retail giant, Nordstrom, is set to streamline its corporate infrastructure by shuttering its offices in Los Angeles and Chicago. This news, confirmed by the company, reflects the growing trend towards remote work in the corporate world.
Shift from Physical to Remote
The luxury department store chain, according to GeekWire, is letting the leases of the two corporate offices expire, attributing the move to the notably low office occupancy rates. As a part of this transition, many employees based in these cities will move into full-time remote roles.
It should be noted that while closing the corporate offices, Nordstrom is not completely retreating from LA and Chicago. Instead, the company plans to utilize its retail store locations in these cities for small-scale team meetings.
Continuing the Trend
The decision by Nordstrom echoes an ongoing trend among large organizations to reduce their physical office footprint – opting for versatile work setups. The rise of hybrid and remote work policies have encouraged many businesses to rethink their need for large-scale, expensive office spaces.
Larger Picture at Nordstrom
Interestingly, these changes come at a time when Nordstrom is contemplating going private, which would effectively end their stock’s public trading.
The recent financial performance has been less than stellar, with a reported net loss of $39 million in Q1, missing expectations. Despite this, Nordstrom did witness a 5.1% growth in net sales, reaching $3.2 billion.
More About Nordstrom
As of February 3rd, Nordstrom had approximately 54,000 employees on its payroll. The company’s annual SEC filing divulges that 75% of these staff were supporting retail store operations, with a mere 10% catering to the supply chain network.
The majority of corporate positions at Nordstrom are based in its Seattle headquarters. However, the company has reiterated its intention to keep its New York office operational.
Closing its flagship store in San Francisco last year, Nordstrom continued to grow its store count, which rose from 347 to 365 as of May 4th.
In Summary
Nordstrom becomes the latest prominent company to reduce its physical presence amidst the rising trend of remote and hybrid workplaces. By shifting its LA and Chicago-based employees mostly into remote roles and considering a move to go private, Nordstrom appears to be implementing strategic changes to adapt and innovate in the rapidly evolving retail landscape.
