Nordstrom gets a facelift as Macy's moves into Portland's downtown

Daily Journal of Commerce (Portland, OR), Jun 21, 2007 by Libby Tucker

The plastic construction barrier looks out of place on the second floor of Nordstrom, where the heavy scent of Bulgari cologne from men's furnishings mingles with $2,500 Roberto Cavalli dresses in ladies apparel.

Behind the barrier, contractors with R&H Construction Co. are installing the metal wall studs that will frame a new Chanel boutique as part of Nordstrom's first complete makeover since it opened across from Pioneer Courthouse Square 30 years ago.

While new designer handbag and apparel boutiques are installed on the first and second floors, the rest of the 12,500-square foot building will be re-carpeted, light fixtures and cash register stations will be replaced, and bathrooms will be updated.

If all goes according to plan, the eight-month renovation will be completed by Christmas, the same time Macy's department store is supposed to open in the under-construction Meier & Frank Building a block away.

Nordstrom Inc.'s Seattle representatives denied the new Macy's motivated the decision to renovate the downtown location.

"We compete with a lot of different retailers; we're all working hard for the customer's dollar," Michael Boyd, a spokesman in Nordstrom's Seattle office said. "We certainly want to stay competitive; we've had our store open there for 30 years and we want to make it fresh and relevant to our customers."

Nordstrom is just one store of a handful of retailers that have undergone renovations or opened new locations downtown in the past six months. Abercrombie & Fitch recently finished updating its store at the corner of Southwest Broadway and Morrison streets. And Carl Greve Jewelers and men's clothier Brooks Brothers recently announced the arrival of downtown locations near Pioneer Courthouse Square.

"The downtown marketplace is very strong with the exception of the transit mall," Craig Sweitzer, a principal of Urban Works commercial real estate firm, said. The Nordstrom renovation, he said "will keep them competitive with the retailers surrounding them and the retail marketplace as a whole."

The Nordstrom renovation isn't completely necessary to stay competitive, Sweitzer said. But the building is on a critical block in the core of downtown Portland, he said, and the store's successful renovation could contribute to a more vibrant shopping district.

The renovation also dovetails with the Portland Business Alliance's plans for more active retail space downtown. The Portland Business Alliance updated its five-year downtown retail strategy in February due to increased competition from regional shopping centers such as Bridgeport Village. The PBA's goal is to expand downtown Portland's retail core boundary to include more blocks for shopping.

"It's going to be spectacular for the city, especially from a visitor's perspective," Jeff Miller, president and CEO of the Portland Oregon Visitors Association, said. "The metamorphosis of both of those stores (Nordstrom and Macy's) - is a strong indicator of a vibrant downtown."