What: Nordstrom’s privatisation and partnership with Liverpool enable a long-term, customer-focused strategy free from public market pressures.

Why it is important: Privatisation is favouring long-term plans. Nordstrom’s renewed focus on customer experience and omnichannel growth aligns with industry shifts toward service differentiation and digital integration.

Nordstrom’s transition to private ownership, finalised in May 2025 through a $6.25 billion deal with Liverpool, marks a decisive move away from the constraints of public markets and short-term investor expectations. The Nordstrom family, now holding a majority stake, emphasises the ability to pursue long-term strategies and maintain greater control over the company’s direction. This shift allows Nordstrom to focus on operational improvements, invest in its core business, and prioritise customer experience without the distraction of fluctuating stock prices. The partnership with Liverpool, a like-minded and family-controlled retailer, brings complementary expertise and a shared commitment to sustainable growth, rather than financial engineering or rapid returns. Nordstrom’s business model now leverages a seamless integration of brick-and-mortar, e-commerce, and off-price channels, with Nordstrom Rack serving as a significant customer acquisition engine. The company’s dedication to high-touch service and innovative loyalty programs further differentiates it in a competitive retail landscape, ensuring that customer needs remain at the centre of its strategy. 

IADS Notes: Nordstrom’s privatisation, as reported in December 2024 (“Department Store Rivals Take Little Solace From Nordstrom Take-Private Deal,” The Wall Street Journal; “The Nordstrom family and El Puerto de Liverpool close to a deal to buy Nordstrom,” WWD), and May 2025 (“Nordstrom shareholders approve privatisation deal,” Press Release), reflects a broader industry trend of department stores seeking long-term value creation and operational flexibility. The partnership with Liverpool, whose revenue grew by 9.2% in 2024 (“El Puerto de Liverpool achieves 9.2% revenue growth,” Modaes), underscores the importance of cross-border alliances and family ownership. Nordstrom’s strong omnichannel performance and focus on personalised service are consistent with recent shifts in luxury and department store retail, as highlighted in July 2025 (“Nordstrom’s new head of personal shopping interviewed,” Financial Times), where digital integration and customer experience are key differentiators.

The Nordstroms open up on why they took their company private