For the remainder of the calendar year, Nordstrom will be paying half of its normal rent.
The announcement came in a letter written by the retailer’s president of stores, Jamie Nordstrom, to involved property owners, which was obtained by Retail Dive.
According to Retail Dive’s report, the letter also stipulated that 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 per cent 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.”
The news follows Nordstrom’s confirmation of reports concerning a planned reduction in its workforce; a move which a spokesperson for the retailer said is part of a wider strategy to cut overheads by 20 per cent, without specifying the number of employees who would be affected by the measures.
