Thread regarding Nordstrom layoffs

JWN earnings coming soon -- May 19 -- one for the ages!

Next leg of this will be the realization that many of the furloughs are permanent layoffs. A lot of corporations are in this posture, and we can see that things are not going "back to normal".

In this cycle, has Nordstrom even announced headcount numbers in these actions? What I have seen in the press releases etc are ballpark financial numbers, capex to cut, expenses, high-level budget targets.

Maybe with the next earnings we will have a concrete plan for layoffs, with specific numbers of headcount, positions eliminated – a WARN filing? Get your popcorn ready.

Trunk Club was a $197 million goodwill writeoff. Ouch. What is the state of this business today? Are people still signing up for curated boxes of full-price fashion bits? What is the ratio of new subscribers to cancellations?

What impact have BevyUp and MessageYes had for Nordstrom? Were these acquisitions a mistake? Will Nordstrom write down their value now, or pocket it for a future earnings report?

We see what happened to Puerto Rico – closed in 5 years, a new record. Whoops. Was Canada also a mistake?

The first Canada FLS opened in Calgary, AB – chasing the tar sands oil money. Vancouver and Toronto were after the false prosperity of twin insane bubbles in real estate and international grift & money laundering. Canada's future is extraordinarily bleak atm, we will see if these locations are no longer profitable and the Nordstrom Canada strategy is bust.

Manhattan FLS – still waiting to see if Nordstrom has skin in the game of the unwanted superluxe condos above the store. Did Nordstrom overspend on this flashy store? Another mistake?

Jeffrey.

Is Hautelook any more than an email service adjunct to the Rack? I've been getting their emails lately, even bought something, and it felt like HL fulfilling through an actual Rack (not a fulfillment center, imo).

Are there ever consequences at the C-level for mistakes made in the last decade? Besides your stawks getting torpedoed. Who owns these decisions?

SO ... these earnings should be pretty yuge. Good luck to you decent people still hanging on, if you study kaizen and apply the lessons of the seven wastes to your work, you can win in the world. I will bear witness.

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| 1382 views | | 7 replies (last May 14, 2020) | Reply
Post ID: @OP+14VjUQcn

7 replies (most recent on top)

@Bleak - all good questions. Very few people at the top are willing to answer with company future in mind. Most folks are finding solutions that keeps their seat warm. And that’s the problem.

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Post ID: @2pfo+14VjUQcn

I know it sounds crazy, but are the fulfillment centers secure? Do you really need 3 in this new retail landscape? To save some time on delivery? Worth the cost?

The West Coast FC was a stretch, almost cancelled. If all retail demand declines and stays depressed (since we’re in a depression), is store 808 enough to do the job?

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Post ID: @2xwx+14VjUQcn

Yes, cap all salaries at 150K. Directors are making 220K, Sr Directors upwards of 275K. I would take a 20% pay cut. Do or die now...

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Post ID: @2css+14VjUQcn

Nordstrom should also cull anyone making > $150K in the Technology organization.

I am quite serious. Or salary cuts of at least a third to stay on.

Very soon there will be plenty of talent out in the street with solid skills willing to work for half that.

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Post ID: @2eyg+14VjUQcn

Truly sorry folks. Tech will see some layoffs. In some areas customer facing and warehouse, SCM will see 1/4 people go. In some other areas 2/4 will go. Unfortunately the decisions are quite biased and not based on meritocracy. Some folks are listed to go because someone does not want them there. List not finalized yet. Stay well & blessed.

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Post ID: @1gqo+14VjUQcn

End of an error, I mean era.

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Post ID: @mhe+14VjUQcn

Understand how important this one is for the company. Nordstrom drew down $800MM from the revolving credit facility, and topped it off with the $600MM senior notes at 8.75% (shark rates).

That's your kitty. This is all you have got. You're George Hurstwood on the run with a pretty girl and $10K cash.

It's do or die time.

The plan going forward must be serious and bold and credible, or Nordstrom will spiral down with the others.

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Post ID: @hjw+14VjUQcn

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