Nordstrom Rack in Waikiki to Close Permanently July 27

The Nordstrom Rack located in Waikiki, Hawaii, will close its doors permanently on July 27, concluding a 10-year operation in one of the state's prominent shopping areas. The store, situated within the Hyatt Centric Waikiki Beach, first opened in 2016 and became a favored destination for both local shoppers and tourists seeking discounted apparel, footwear, and accessories.

The impending shutdown will affect 34 employees, according to a Worker Adjustment and Retraining Notification (WARN) filing submitted by the Seattle-based company. Nordstrom has stated that some employees may be offered opportunities to transfer to other company locations, though the number of available transfers and specific individuals have not yet been determined. The company confirmed it has provided the mandated notice to affected staff.

Nordstrom has not provided a specific reason for the closure of the Waikiki location. Following this closure, Hawaii will have one remaining Nordstrom Rack at Ward Village Shops. The full-line Nordstrom department store at Ala Moana Center will continue to operate.

News of the store's closure has generated disappointment among regular customers, many of whom expressed their sentiments on social media. Some patrons lamented the loss, noting its unique selection and quality compared to other discount retailers.

The closure occurs amid broader challenges facing the retail industry across the United States. Retailers are contending with rising operating expenses, evolving consumer purchasing habits, and intense competition from online businesses. This trend has led to numerous store closures nationwide.

In recent years, other Nordstrom locations have also closed. For instance, a San Francisco store shut down in August 2023, with the company citing factors such as increased crime, homelessness, and public drug use in the city. Other major retailers have also announced significant closures, including Macy's, which plans to close 14 underperforming stores, and Saks Global Group, which filed for bankruptcy. Data indicates that 8,234 U.S. stores closed permanently in 2025, an increase of 12% from the previous year and the highest number on record, according to Coresight Research. As of 2023, Nordstrom operates 360 stores in the U.S., comprising 93 Nordstrom stores and 258 Nordstrom Racks.