Nordstrom is permanently closing 16 stores. Here's what we know about which locations could shutter.

• Nordstrom is permanently closing 16 stores.
• The closing stores will be among the company's 116 full-line locations — the multi-floor department stores that carry Nordstrom's full assortment.
• The closings will likely inflict pain on shopping malls. "It is a blow for malls already severely bruised by the crisis and slowdown in retail," said Neil Saunders, managing director of GlobalData Retail.
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Nordstrom announced late Tuesday that it plans to close 16 full-line department stores permanently.

The closings represent about 14% of Nordstrom's full-line fleet of stores, which are the large, multi-floor department stores that carry its entire assortment.

Nordstrom has 378 locations total, including 116 full-line stores, 247 discount Nordstrom Rack stores, three Jeffrey boutiques, two clearance stores, five Trunk Club clubhouses, and five Nordstrom Local service hubs.

Analysts are praising Nordstrom's decision to trim its fleet.

"We have long since stated that Nordstrom has too many department stores that are in sub-optimal locations," said Neil Saunders, managing director of GlobalData Retail. "Since those shops were originally opened, the demographics in the trade areas and the competitive mix have changed for the worse. The result is that Nordstrom has been left exposed."

Cowen analyst Oliver Chen said in a note to clients on Wednesday that closing stores "should yield more efficient inventory management, free capex for the more productive local markets, & provide more consistency in-store experience."

"Difficult decisions needed to be made sooner given the acceleration of digital trends combined with traffic losses & risks ahead," he said.

The closings will likely inflict pain on shopping malls and neighboring retailers, however. Nordstrom's department stores serve as anchor tenants for many shopping malls. These tenants typically generate a large portion of customer traffic and rent revenues for mall owners.

"Many of the closures will be in secondary markets where the loss will be felt by mall operators and other tenants," Saunders said. "It is a blow for malls already severely bruised by the crisis and slowdown in retail."

Chen said retailers overall should expect in-store revenues to drop by as much as 20% to 50% "for the foreseeable future."

"Unfortunately, Nordstrom's announcement is likely the first of many as we expect stores may close in 10% or more of shopping centers, and the number of malls may eventually decrease to 800 or less from [about] 1,200."

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