Buy, Build, or Bridge? The Liverpool-Nordstrom Deal Reveals Mexico's Bold Retail Trajectory
How a Mexican retail giant's strategic investment signals a new era of cross-border commerce - and what it means for the future of North American retail.
There I was, cruising through a Liverpool store in Mexico after presenting to a local business group. I soon found myself mesmerized by an associate meticulously steaming wrinkles out of merchandise right on the sales floor. At the time, I thought, "Now that's old-school retail detail, kind of like what I used to see at Nordstrom." Turns out, I was noticing more than attention to detail—I was witnessing an operational omen for what was to come.
The two iconic retailers already have a history. In September 2022, Liverpool acquired a 9.9% passive stake in Nordstrom, becoming one of its largest shareholders. Fast-forward to May 2025, and a $1.23 billion investment by El Puerto de Liverpool turned Nordstrom’s years-long dream into a reality by taking the iconic US retailer private in a $6.25 billion deal. But this is more than just another acquisition story. It represents a Mexican retailer and real estate conglomerate flexing its muscles on the global stage.
When Bridging Beats Building
One of my hottest Retail Trajectories over the last several years asks a fundamental question that every retailer faces: Do you buy what you need outright, build it yourself, or find a clever way (and awesome partner) to bridge to it? (Buy, build, or bridge?) The Liverpool-Nordstrom deal is a fascinating twist on this decision tree—a "bridge-to-buy" play that's opening up possibilities neither company could have accessed alone.
Let's be honest: Nordstrom was stuck. Years of trying to build its way out of a department store doom spiral haven’t worked. Declining foot traffic, crushing real estate costs, and Wall Street's obsession with impossible growth targets were slowly strangling what was once a retail darling. It’s a hurricane of headwinds that is hitting multiple retailers with full force. Nordstrom decided to take action before it was too late.
Enter Liverpool, bringing more than just a billion-dollar check. It built a big bridge to survival and transformation for Nordstrom. Taking Nordstrom private isn't just about the money; it's an escape from the quarterly earnings grind that's claiming American retailers right and left. When even Walmart is dialing down expectations in the wake of tariff tremors, you know the public market pressure is real. Going private gives Nordstrom something precious: room to breathe and the freedom to think beyond the next 90 days.
Mexican Retail's Global Ambitions
Here's where this story gets really interesting: we're witnessing a Mexican company stepping up as the strategic savior for an American retail institution. Talk about a plot twist, right? In a flip of the usual script of U.S. companies expanding south, we've got Mexican retail sophistication moving north (and frankly, it's about time).
Liverpool isn't just bringing pesos to the party. These folks operate a diversified retail ecosystem that would make most U.S. retailers green with envy: 124 Liverpool department stores, 186 Suburbia fashion boutiques, 28 shopping centers, plus they manage nearly 120 boutiques for U.S. brands like Gap and Williams Sonoma. They've cracked the code that American department stores have been fumbling with for years—how to run multiple business models and formats without cannibalization or distraction.
But wait, there’s more! Liverpool pulls in 90% of its revenue from actual retail, with the rest coming from credit cards and real estate—both growing over 20% year-over-year. The conglomerate employs 80,000 people, invests heavily in training, and is racking up international recognition. Time Magazine even named it one of the World's Best Companies based on multiple factors, from employee satisfaction to financial performance. Not too shabby for a company that started by selling fabric from cases in 1847.
The Power of Strategic Timing
The timing of this investment tells you everything you need to know about Mexican retail's confidence. While U.S. retailers are fretting over tariffs and economic uncertainty, Liverpool just dropped over a billion dollars on American retail's future—and placed a big bet on its ability to help shape it.
This confidence isn't naive optimism. Mexico's retail scene is on fire right now, with a significant demographic shift happening that's largely flying under the radar. Between 2019 and 2022, there was a 69.9% increase in U.S. citizens moving to Mexico. Americans now make up nearly 70% of the 1.2 million migrants in Mexico.
I'm not saying Liverpool is plotting an elaborate strategy to woo American expats (though that would be brilliant, and surely isn’t lost on Liverpool as a long-term growth driver). The fact is, Liverpool already knows how to serve American brands in Mexican markets. Now it’s getting a glimpse of the flip side—how to serve American retail in American markets.
Bridging, but to What Future?
So what's Liverpool really building toward here? Because you don’t drop a cool billion on a life raft—something bigger is being set up. The cross-pollination possibilities are kind of mind-blowing, and a few scenarios come to mind:
Market Intelligence on Steroids
Liverpool now gets front-row seats to American retail operations, customer psychology, and market dynamics. That's pure gold for informing their other partnerships and expansion ambitions (why would they stop at Nordstrom?).
Brand Portfolio Plays
What if we start seeing Nordstrom shop-in-shops inside Liverpool stores? Or co-branded initiatives that blend both companies' strengths? Nordstrom is an increasingly rare breed of retailer that is still a legitimate brand in its own right (not just a place that sells other brands). Liverpool enjoys the same status in Mexico, so the co-branding scenarios are intriguing.
Operational Excellence by Osmosis
Remember that associate steaming clothes? Liverpool's operational discipline could help Nordstrom rediscover the service excellence that used to be its calling card—back when American department stores actually stood for something.
Cultural Commerce
As Hispanic and Mexican consumer segments explode in the U.S., Liverpool brings authentic cultural insights that could help Nordstrom connect with these customers in ways their competitors can't match.
The Resilience Factor
But maybe the most impressive thing about this whole deal? Liverpool's sheer nerve. Despite tariff threats, immigration drama, and peso valuation roller coasters, it just made a massive bet on North American retail integration. Liverpool isn’t running away from U.S. markets—it’s doubling down on them.
This kind of boldness reflects a bigger Retail Trajectory I'm tracking: "pressure-proof partnerships." Instead of freezing up when uncertainty reigns, smart retailers are creating alliances that not just help them weather current storms but emerge even stronger.
Looking Forward: A New Model for Retail Partnerships
The Liverpool-Nordstrom partnership could totally rewrite the playbook for cross-border retail deals. It's not your typical acquisition or merger—it's strategic bridging that lets both companies keep their identity while unlocking new superpowers.
For Nordstrom, it's a potential escape route from the department store graveyard where so many of its peers have ended up (and unfortunately, more will land). For Liverpool, it's a masterclass in international expansion without the usual risks of building from scratch or making solo bets on foreign markets.
And for everyone else watching? This signals that the future of retail might care less about your headquarters zip code and more about how creatively you can bridge capabilities, markets, and consumer insights across borders. Geography is becoming less relevant; strategic thinking is everything.
The Liverpool-Nordstrom deal isn't just two companies finding a smart partnership. It's Mexican retail confidently writing the next chapter of North American commerce, one strategic bridge at a time.
It's about time someone showed us how it's done, and it’s only the beginning.
What retail partnerships are you watching that show this kind of creative bridging? And how do you think cross-border retail collaboration evolves from here?
