Residents of Honolulu will soon have one less clothing shopping option as a well-known retailer, operational for over ten years, is set to shut down by the end of July.
Nordstrom Rack in Waikiki is closing its doors on July 27th, according to local sources.
This 34,000 square foot store opened in the spring of 2016, situated within the Hyatt Centric Waikiki Beach along Kuhio Avenue.
The closing will impact 34 employees, though some may be given the chance to transfer to other Nordstrom locations.
If employees do not receive transfer offers or choose not to accept them, they will likely remain until either July 27th or up to two weeks following the closure.
It’s uncertain how many of the current employees will be extended transfer opportunities.
Among the staff are store managers, assistant sales managers, sales associates, and customer experience specialists.
The federal Worker Adjustment and Retraining Notification (WARN) Act requires that companies inform employees about forthcoming layoffs or closures ahead of time.
Nordstrom notified its staff in late May, stating it had “provided appropriate notice to affected employees.”
Fortunately for Hawaii shoppers, there’s still a Nordstrom Rack at Ward Village Shops and a traditional Nordstrom department store at Ala Moana Center.
While Nordstrom has not given a specific reason for the closure, some customers shared their thoughts after a post from the Honolulu Star-Advertiser on social media.
One user speculated that rent could be exorbitant, suggesting that “the monthly rent at the Nordstrom Rack store is ridiculously high,” estimating it could be between $90,000 and $200,000 monthly.
This same user mentioned that the Nordstrom at Ala Moana Center might incur even higher costs, potentially reaching between $700,000 and $900,000 a month.
They expressed frustration, noting that hefty rents often force businesses to close.
Feeling nostalgic, a customer commented, “Oh my gosh, this is our favorite place in Kuhio! We’ve been there a thousand times! They have great things there. It’s a great store.” Another shared a similar sentiment regarding the loss.
