In a groundbreaking move, Nordstrom, the iconic American retailer, announced its transition to a private company following a buyout deal worth a massive $6.25 billion. The deal, struck between Nordstrom’s founding family and Mexican retail giant El Puerto de Liverpool, marks a bold new chapter in the company’s illustrious history.
The Big Deal
The agreement, unanimously approved by Nordstrom’s board of directors, is set to close in the first half of 2025. Under the terms:
- The Nordstrom family will hold 50.1% ownership, cementing their control over the brand’s future.
- El Puerto de Liverpool will take a 49.9% stake, adding another feather to its cap in the global retail space.
- Common shareholders will receive $24.25 per share in cash, a win for investors who’ve long awaited clarity on the company’s direction.
“For over a century, Nordstrom has operated with a foundational principle of helping customers feel good and look their best,” said CEO Erik Nordstrom. “Today marks an exciting new chapter for the business. On behalf of my family, we look forward to working with our teams to ensure Nordstrom thrives long into the future.”
A Familiar Dream Revived
This isn’t Nordstrom’s first attempt to go private. A similar effort fell through in 2018, but the family never gave up. Their persistence paid off—now, their September offer of $23 per share has evolved into a deal nearly double the valuation, thanks to the inclusion of El Puerto de Liverpool as a partner.
Retail’s Changing Landscape
While Nordstrom has navigated the challenges of the luxury retail sector—marked by choosy customers and cautious spending—the pressures are real. As competitors like Walmart, Best Buy, and Target appeal to budget-conscious shoppers, Nordstrom has had to rely on its premium brand legacy.
Recent financial results show the company still has its spark. Sales in the fiscal third quarter grew 4% year-over-year, beating Wall Street’s expectations. But Nordstrom remains cautious, forecasting a softer holiday season amid the ongoing battle to win consumers’ wallets.
A Shared Vision
Founded in 1901 as a humble shoe store, Nordstrom grew into a retail empire with over 350 locations across its flagship, Nordstrom Rack, and Nordstrom Local brands. Now, with El Puerto de Liverpool—a powerhouse that operates shopping centers and department stores across Mexico—joining the fold, Nordstrom is poised to innovate and expand its global footprint.
The partnership symbolizes a shared commitment to luxury retail. With Liverpool’s expertise and Nordstrom’s legacy, the duo promises to write a new playbook for retail excellence.
What’s Next?
As Nordstrom prepares to close this monumental deal, the focus shifts to execution. Will this private structure provide the agility and focus needed to thrive in an increasingly competitive retail market? Time will tell.
One thing is clear: Nordstrom isn’t just looking to survive—it’s gearing up to reinvent luxury retail for the next century.
