Nordstrom Closing Horton Plaza Store

[marshd1000]

Nordstrom is closing their store in Horton Plaza in Downtown San Diego:

http://www.nbcsandiego.com/news/local/H ... 91441.html

[SamSpade]

The news report uses a quote from the president that this store was "remodeled" at some point but based on some of the newer remodeled Nordstrom stores, this one hasn't seen cap-ex for some time. Nordstrom's focus is clearly on Rack, which is probably why some investors want to see it spun off. Financials must really be a contrast at this point.

The mall's tenant mix is on the higher side of average, so it will be interesting to see who breaks their lease now that Nordstrom is leaving. Most mall stores have a clause that if an anchor (or sometimes by name, Nordstrom) leaves, they can as well. https://www.westfield.com/hortonplaza/stores/all-stores

[rwsandiego]

The news report uses a quote from the president that this store was "remodeled" at some point but based on some of the newer remodeled Nordstrom stores, this one hasn't seen cap-ex for some time. Nordstrom's focus is clearly on Rack, which is probably why some investors want to see it spun off. Financials must really be a contrast at this point.

The mall's tenant mix is on the higher side of average, so it will be interesting to see who breaks their lease now that Nordstrom is leaving. Most mall stores have a clause that if an anchor (or sometimes by name, Nordstrom) leaves, they can as well. https://www.westfield.com/hortonplaza/stores/all-stores

The store was extensively remodeled about ten years ago, with a minor refresh and the addition of a Topshop within the last year or so. I'm not surprised that they are closing, as Fashion Valley is only 5 or so miles up the freeway or on the trolley and is easily twice as big. The UTC store is being replaced with a larger store, so the company is definitely spending money in San Diego. Thing is, Horton Plaza does not draw the crowds it used to now that Fashion Valley has been brought up a notch. They have never recovered from the parking debacle a few years ago when they changed the validation policy. It went from three free hours to three free hours with a minimum purchase and they required receipts. Business took a nosedive. That and a lot of the more upscale stores have left.