“This doesn’t mean Nordstrom is closing more stores. Last year, after stores were shut for weeks and in-store sales hemorrhaged, Nordstrom decided not to reopen 16 of its full-service department stores, leaving it with 94 U.S. locations. Bramman says Nordstrom is done on that front.”
Link: https://finance.yahoo.com/news/nordstrom-strategy-changing-now-50-224549206.html
Mr koolaid, Bleak esc any thoughts?
Nordstrom news is fake news!!!
Fake news, don’t believe it! We are doing great LOL
There are a couple of more fulfillment centers in the works. They will move a bit more slowly on the next two based on the lessons learned from the previous roll outs and the time it takes to move out a few of the leaders involved in Supply Chain.
So what's the plan for the expanding online sales? Do you have insight?
As many times as it takes.
The fat has just begun to be cut out of the FLS. You haven't seen nothing yet.
Theses stores are only profitable, because every other year they do a restructure. How many times can they continue to cut the fat at the full line level until there is noting left?
I need to sift through a fresh 10-Q report for clues. Online at more than half the revenue is a problem for the FLS. It is good to hear the company is profitable.
What is the final legal and financial status of the mall rent actions of 2020? What if any is the Nordstrom liability in NYC #212 for the rest of the Extell tower?
I pay attention to the long list of risks they call out in a quarterly report because they are honest and real concerns.
Most if not all the stores left standing are profitable. If Nordstrom plans on 17 billion in sales in 2021 all the remaining stores will remain open. Online will produce a greater percentage of those sales and a lower percentage of profits. You might not like the smell but those are the facts. FLS are not dragging down a thing if they are profitable. The stores that close in the future will be those stores that because of age would need substantial capitol investment and if there is no payback on that investment they will close. With the exception of the Jeffery locations the 16 full line stores that closed in 2020 were already targeted for closure by 2023. Covid 19 gave Nordstrom the excuse to do them all in one fell swoop. Racks are cheap and quick to build. Some are barn burners and some are dogs but there is a limit to how many Racks are needed around the country. They have 10 year leases and if they do not provide a certain return on investment when the lease is up they close. Blake saw the potential when he was the President of the Rack division and intended for the Racks to be the main driver of the company sales and profits balanced with a decent FLS portfolio. Of course this was before the true picture of online sales developed.
I’m unsure how anyone could make such a statement, especially in the department store sector. FLS have been dragging down the Rack for sometime, just like this recently Q4 results show. Now they are telling me 55%+ of FLS sales are coming from online? Yet they still need roughly 80% of around 125 locations they had at there peak. Somethings just don’t pass the smell test.