retail watch | Sep 17, 2026 |
Nordstrom quits home in its New York location. Will its other stores follow?

When the famed upscale department store finally arrived in Manhattan in 2019 following years of anticipation and rumors, Nordstrom was the talk of the town. Though the location on the corner of 57th Street and Broadway was a bit of an odd choice—it’s a brisk walk away from competitors on Fifth Avenue—the seven-story store was pretty impressive, especially compared to the other city newcomer that arrived around the same time: the ill-fated and ultimately not-so-dearly departed Neiman Marcus location in Hudson Yards.

Perhaps the highest-profile position inside Nordstrom’s corner location was the retailer’s largest-ever home furnishings and gift department. Spread out on two floors, the home department made a bold statement that the department store—which had previously considered the category an afterthought, often giving it less-than-primary space—was serious about home.

The department originally featured an expansive selection of soft home, bedding and bath—often from DTC brands—as well as tabletop, kitchenware, the occasional small appliance, and a variety of giftables, including an area featuring merchandise from the Museum of Modern Art. It wasn’t enough to fully furnish a Manhattan apartment (upholstery and case goods were notably absent), but it was an impressively deep selection.

Over time, the offerings gradually seemed to go more in the direction of gift than home, but the floor space devoted to the broader category remained essentially the same.

That is, up until recently: What was once the home space now hosts rotating pop-ups. This summer, it was a U.S. Open activation showcasing apparel from Polo Ralph Lauren, the tennis tournament’s official licensee.

As for home and gift? What’s left of it occupies the back corner of the store’s fifth floor, and it’s mostly candles, New York souvenirs and tchotchkes. As such, the array represents what shoppers will find in most Nordstrom branches around the country—although even those typically stock some towels and the occasional decorative pillow or throw.

So, has Nordstrom thrown in the towel (pun intended) on pursuing a broader strategy in the home space? The answer is yes and no.

By and large, its stores have veered away from prioritizing home product for in-person shoppers. Online, it’s a different story. Nordstrom.com has an extensive assortment of home furnishings, both soft and hard. Home textiles brands include Ralph Lauren, Ugg and DTC names such as Parachute and Boll & Branch. There are small kitchen appliances, tabletop and cookware from the likes of KitchenAid, Villeroy & Boch, and Gibson. Nordstrom also sells some select consumer electronics, pet products, luggage—and more candles than you could possibly use in a lifetime of romantic evenings. Again, the only category really missing is furniture.

Nordstrom, it must be pointed out, is certainly not alone in forsaking home in its stores. Upscale competitors like Saks and Neiman Marcus have long opted out of the category, and even more mid-tier department stores like Dillard’s and Belk often drop it from smaller locations.

The only upscale department store that is truly a player in home is Bloomingdale’s, which has full assortments of home textiles, housewares, tabletop and furniture in most of its stores, as well as online.

What’s behind the sad state of affairs for home in department stores? Executives past and present will tell you it takes up too much retail real estate, it doesn’t turn the way apparel and fashion do, and the markdowns are a killer. Yet Bloomingdale’s makes it work, and ironically some of the most successful retail executives in recent history—from Allen Questrom of Barneys to Mike Steinberg and Tony Spring of Macy’s—began their careers in home.

Back at Nordstrom, home is relegated to the gift shop upstairs, and in-store signage calls its former area The Corner. No mention of home.

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Warren Shoulberg is the former editor in chief for several leading B2B publications. He has been a guest lecturer at the Columbia University Graduate School of Business; received honors from the International Furnishings and Design Association and the Fashion Institute of Technology; and been cited by The Wall Street Journal, The New York Times, The Washington Post, CNN and other media as a leading industry expert. His Retail Watch columns offer deep industry insights on major markets and product categories.

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