Nordstrom Rack Exits Downtown Portland

On December 2, 2025, Nordstrom Rack announced that its downtown Portland store at 245 SW Morrison Street will permanently close on January 31, 2026. The closure affects 37 employees, though Nordstrom says some may be transferred to other stores.

That loss is more than just one store, it’s a deeply symbolic blow to downtown Portland. For decades, that Rack location served as a key draw for bargain-conscious shoppers, office workers, and locals who relied on a mid-range discount retailer downtown. Its closure leaves a major retail-sized vacancy at a time when the downtown core is already fragile.

Nordstrom Rack Is Growing — Just Not Here

What makes this closure even more notable is that Nordstrom Rack is not shrinking overall, the brand is expanding rapidly in other parts of the country. As of early 2025, Nordstrom operates 277 Rack stores in the U.S., up from 258 the prior period.

In fact, 2024 and 2025 have seen dozens of new Rack openings. The company opened 23 new Rack locations in 2024 and is on track to open a similar number in 2025.
By the end of 2025, Nordstrom Rack expects to have “nearly 300 stores,” a clear signal that the brand remains a growth engine for Nordstrom.

In short, despite pulling back from downtown Portland, Nordstrom is doubling down on growth elsewhere.

Nordstrom Rack’s Exit Is a Wake-up Call

The closure of downtown Portland’s Nordstrom Rack store should not be dismissed as a small corporate decision. It’s a symptom of broader structural problems. Declining downtown foot traffic, high costs, shifting retail priorities, and a business climate that favors expansion elsewhere.

Nordstrom Rack’s silent departure is a red flag. Let’s not wait for more retailers to quietly walk away before we act.