NORDSTROM EXTENDS STORE CLOSURE TIMELINE, TO FURLOUGH SOME EMPLOYEES

Nordstrom said it will extend its temporary store closure for at least one week, through April 5th on Wednesday. Due to the uncertainty of COVID-19, the company will continue to assess the situation market by market and will provide further updates as appropriate. This closure impacts all U.S. and Canada stores, including Nordstrom, Nordstrom Rack, Trunk Club, Jeffrey, Nordstrom Local, and Last Chance.

Since March 17th, the Seattle-based retailer has provided ongoing pay and benefits to all store employees impacted by the temporary closures. Now Nordstrom plans to offer store employees an additional week of pay through April 5th, as well as benefits through the month of April.

The company said it would require a smaller workforce to execute the critical activities of the business during this time. As a result, it will be furloughing a portion of corporate employees starting April 5th for six weeks. Impacted corporate employees will continue to receive enrolled benefits.

Further, the Nordstrom said that its executive leadership group will forgo a part of their salary, and both Pete and Erik Nordstrom declining their salary from April through September. Similarly, all members of the company’s board of directors will forgo cash compensation for a six-month period.

“We are taking action across our business to respond to the challenges we are facing today and to best position Nordstrom for our employees, customers, and shareholders,” said Erik Nordstrom, chief executive officer of Nordstrom. “We have a responsibility to protect the health of our people, while also preserving our long-term ability to offer jobs and benefits to our employees. The decisions we make are with that in mind.”

“This is the most difficult decision we have made in our company’s long history. Through our 119 years, our company has faced many challenges, but these are unprecedented times,” continued Nordstrom. “We are confident these steps will help ensure the health of our company as we continue to navigate the unknown and changing environment we are facing.”

Today, Nordstrom operates 380 stores in 40 states, including 116 full-line stores in the United States, Canada, and Puerto Rico; 248 Nordstrom Rack stores; three Jeffrey boutiques; two clearance stores; six Trunk Club clubhouses; and five Nordstrom Local service hubs.