Nordstrom closing store at Lombard shopping center, 101 employees to be laid off

Why this matters

Nordstrom’s decision to close its store at the Lombard shopping center, resulting in the layoff of over 100 employees, underscores persistent challenges in the US retail real estate sector, particularly for department stores within suburban shopping centers. This move signals ongoing structural shifts in consumer behavior and retail formats that continue to pressure traditional brick-and-mortar anchors. For institutional investors and lenders, the closure highlights the vulnerability of retail assets anchored by legacy department stores, which have been underperforming relative to other retail formats and property types. From a capital markets perspective, such closures may exacerbate leasing risk and vacancy concerns in suburban shopping centers, potentially leading to downward pressure on valuations and income stability. It also underscores the importance of tenant diversification and the need for repositioning strategies that can adapt to evolving retail demand. Lenders may respond with increased scrutiny on retail-heavy portfolios, adjusting underwriting assumptions to reflect heightened risk. For allocators, this development reinforces the case for cautious exposure to retail real estate, particularly assets reliant on traditional department store anchors, and for prioritizing sectors and properties demonstrating resilience amid shifting consumer preferences.

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On the RET wire

• Disclosed retail deal value tracked in August 2026: $2.7B across 94 reported transactions. All Retail coverage →

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