Portland’s retail landscape is crumbling, and now Nordstrom’s CEO is sounding the alarm.
According to The Sun, US, Erik Nordstrom, CEO of the iconic department store chain, has voiced serious doubts about the company’s ability to keep operating in Portland amid a wave of theft, closures, and economic challenges.
Years of retail decline in Portland have set the stage for this crisis. Macy’s shuttered its downtown store back in 2017, marking an early sign of trouble. Since then, the situation has only worsened.
The COVID-19 pandemic accelerated the downturn, with Nordstrom closing its Clackamas Town Center location in 2020 as part of a broader cut of 16 stores nationwide. Other major retailers followed suit, unable to weather the storm.
Last year, outdoor giant REI pulled out of the Pearl District, citing skyrocketing security costs from break-ins and theft. Target also closed three Portland stores in 2023 for the same reason. Theft is choking the life out of retail here.
Portland’s Lloyd Center mall, once a retail hub, went into foreclosure in 2021. Yet, there’s a flicker of hope—recent reports highlight a revival with about 90 tenants now occupying the 65-year-old space. Many are small businesses and creative ventures replacing national chains.
At Lloyd Center, innovation is taking root. Spaces once held by Spencer’s, Brookstone, and Foot Locker now host a pinball museum, magic shows, and an art gallery. Barnes & Noble and GameStop remain as anchors.
“It’s a beautiful space, so we might as well use it,” said Jason Leivian, owner of Floating World Comics, capturing the adaptive spirit.
“Portland really needs that,” added Matt Morrison of Legion Sabers, describing the mall as a startup incubator for creative retail. This grassroots effort shows markets can adapt when left to innovate.
Against this backdrop, Nordstrom’s future in Portland hangs in the balance. The chain still operates three locations: a full-line store, a downtown Nordstrom Rack, and another Rack at Cascade Station. But concerns persist, especially about the downtown spots.
In the first four months of 2023, the downtown Nordstrom Rack ranked among Portland’s top three businesses for reported theft and burglary. This mirrors a broader trend—crime is driving retailers out of the city. Erik Nordstrom recently shared his worries directly with Portland Mayor Keith Wilson. “I don’t know how long we can continue,” Nordstrom told Wilson, signaling deep uncertainty about sustaining operations.
Mayor Wilson, speaking at a community meeting on Monday about a proposed homeless shelter in the Pearl District, didn’t shy away from the retail crisis. He noted empty downtown shops and the looming closure of a Fred Meyer store. How much more can Portland lose?
“How many signature businesses must we lose before we say ‘enough’?” Wilson asked, urging action. A Nordstrom spokesperson, meanwhile, offered a cautious note: “We continue to work with the city.”
For investors and business-minded readers, Portland’s retail woes are a cautionary tale. The government must step back from overreach and focus on core issues like public safety to let markets thrive. Consider diversifying investments away from urban retail-heavy portfolios—look to e-commerce or suburban growth areas instead.