The US retail industry continues to face significant challenges, with luxury retailer Nordstrom and department store chain JCPenney announcing store closures. This move reflects the broader struggles within the sector, grappling with a difficult economic climate and evolving consumer behavior.

Nordstrom is slated to shut down two of its locations by the end of August. It will close the Saint Louis Galleria Nordstrom store in St Louis, Missouri on August 24, followed by the Nordstrom store in Santa Monica, California, on August 26. The company confirmed these closures as it works to maintain its financial stability.

Following Nordstrom's announcement, JCPenney revealed plans to close a few of its own stores in the coming months. The company cited various reasons for these closures, including expiring lease agreements and market changes, as it endeavors to adapt to rapidly shifting retail conditions. The retailer plans to close eight JCPenney locations across eight different states.

Further underscoring the industry's difficulties, US retail closures last fall reached their highest level since the COVID-19 pandemic, according to data from Coresight Research. The impact extends to employment, with job cuts in the retail sector rising by 80 per cent in the first five months of 2025 compared to the same period last year, a report from Challenger, Gray & Christmas indicates.

Andrew Challenger, Senior Vice President, Challenger, Gray & Christmas, notes, factors such as tariffs, funding cuts, consumer spending, and overall economic pessimism are putting intense pressure on companies’ workforce." Companies are spending less, slowing hiring, and sending layoff notices, with store closures being a direct contributor to these job reductions, he adds.