It looks like the next six months decide if Nordstrom continues as a going concern. I've already discussed that all of Nordstrom's cash-on-hand at the moment is borrowed, and that it is uncertain whether any additional debt will be offered in the future. So spend like a Swede, prudently.
The next challenge is Anniversary Sale – now posted with a banner on the web store landing page. It looks like it's on – August 19th, with an initial preview July 24, and staggered Early Access for tiers of the Nordy Club rewards program. So it's going to happen, anchored to a date – this is good news.
I'm continuing to see heavy discounting in email promotions from the Rack, things like decent dress shoes for $20, nice. There is other clearance going on, they're moving old inventory and raising cash now – also good news. Smart.
Now for some bad news. I'm going to post a link from someone who has a solid grasp of the problems we are facing, Charles Hugh Smith's blog:
The piece is thoughtful and worth reading, I agree with him how little slack there is in The System. But what caught my eye was his diagram of dominoes, particularly this one:
"Zombie corporations rush to borrow billions, but this only delays their insolvency."
Nordstrom obviously comes to mind with the revolver max-out and the special debt issue. The next six months – sure, let's include the holiday season – are a race for the company to demonstrate it is not a "zombie", that there is life in retail. Because if it fails, thanks to the built-in high costs of the baseline business – again, see the blog post – the remaining cash-on-hand is measured in quarters, not years.
The next six months are critical ... and the next six months after that ... and the next ... you may be on this treadmill for a while.
Also, could someone please post the updated org chart in Technology? just kidding, cheers