TACOMA, Wash. -- The financial meltdown has analysts predicting this could be the toughest holiday season for retailers in more than 25 years, but consumers wouldn't notice that with a new Nordstrom store in Tacoma.

Hundreds of people joined Nordstrom in their kick off celebration of the opening of its relocated store at the Tacoma Mall Friday morning with a pre-opening "beauty bash" outside the store's mall entrance prior to the official 10 a.m. opening.

The new store was built next to the old store at the west side of the mall. With a 138,000-square-foot store, it has an expanded selection of designer brands and a number of new services such as in-store alterations and complimentary gift boxes. The store also includes a restaurant and espresso bar.

Retired chairman of the board, Bruce Nordstrom, attended the opening with two of his sons.

"These are perilous times there's no question about it," Nordstrom said.

Despite Nordstrom's staying power, the company hasn't been immune to the effects of the struggling economy.

In just one year, Nordstrom stock has gone from about $50 a share to just over $25.

"I guess we probably wish we weren't opening stores right at this second because of the cost involved and the fact that overall business is down but it does provide energy, enthusiasm, spirit," Nordstrom said.

Alarmed by the financial meltdown, analysts are predicting that spending nationwide could deteriorate as problems on Wall Street cascade through the economy and layoffs continue to rise.

Harlyne Huhta's well aware of all of this, but still spent $200 within a couple of minutes.

"Yea, it's extravagant, but I don't do it very often. I'm lucky with my retirement things are still intact," said Olympia resident Harlyne Huhta.

Nordstrom recalls the Boeing crash of the early 70s when Seattle saw an unemployment rate of 18-percent.

He has no doubt the area will make it through these tough times, but it won't be easy.

"I've been doing this for over 60 years and I've seen some downs. This is a tough one by the way this ranks right up there with any of them," Nordstrom said.

When asked if we're in a recession, Nordstrom said, "Yes, if not something worse."

The original Nordstrom at Tacoma Mall opened in 1966 adjacent to the new store and is now closed for business.