Thread regarding Nordstrom layoffs

If online is strong this quarter...

  • it actually makes a bankruptcy filing late this year even more likely.

Online could easily exceed 50% of demand this quarter, maybe even 60%. This only makes the stores, with their leases and overhead (you), even more obvious a burden, to be junked in a reorganization.

Earnings out Tuesday.

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| 1258 views | | 10 replies (last )
Post ID: @OP+16A44735

10 replies (most recent on top)

I was a schlub, too, no one special or the least bit important, nope.

What started out as a very cautious and typically Nordstromie-prudent effort at some point got out of hand and decided to shoot the moon. As far back as around 2013 IIRC the company was scouting out Manhattan, trying to understand the local retail trade, running the Jeffrey stores, and then those experimental charity stores, and the Rack on Union Square. We all knew that a FLS was coming.

But it took years, and then when they finally pulled the trigger they went over the top with it all, with the Excell supertall building, the separate Men's store, the rumored cost overruns. At some point all that Swedish prudence went right out the window, and I wish I had been privy to the conversations that led up to that. It took so long that it missed the entire boom cycle of the 2010s, the go-go fake finance years when NYC went beyond bubbly. Whoops.

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Post ID: @5sfh+16A44735

I'm just a lowly schlub and both me and my co-worker friend knew that building in NY was a huge mistake...

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Post ID: @5fhg+16A44735

I wonder if the 61% "digital sales", if isolated from the BAM corpse, were actually profitable for Q2? Is this the core of a viable business that can be pulled from the fire in a couple of months?

It sounds like high-end fashion brands, and "designer" anything are dead as disco. Could future Nordstrom be the Racks + online + maybe a dozen FLS nationwide? Nordstrom is looted even in their hometown, how can you possibly continue in this line of business? Chicago, Minneapolis looted, how many more to come? Who wants to go shopping when you can be robbed and the assailant will likely be released without bail to rob you again tomorrow, because unfair and reasons?

Lord & Taylor liquidating, no buyers. Amazon now owns the beautiful 5th Avenue flagship building that Nordstrom SHOULD have bought instead of doing, well, what they did, at the worst possible time, for far too much expense.

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Post ID: @4ify+16A44735

He kaizened them right out of paying rent, how are you going to beat that?

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Post ID: @3jze+16A44735

100 FLS & 200+ Racks & restaurant division altogether is 39% of sales, and also the lion’s share of overhead.

Leases never sleep, even when Jamie sends a letter to The Man.

Next steps? Should Nordstrom pull me in as a management consultant with Kaizen man? We would so kick a55 and get things done.

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Post ID: @3pjd+16A44735

I wonder how much of the digital sales was Hautelook?

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Post ID: @2wgc+16A44735

Ding ding ding ding ding

"Digital sales as % of total net sales" (for Q2)

61%

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Post ID: @2twa+16A44735

The late Blake would be the first to say, “Sales are the truth.”

The truths revealed here could reshape this company radically in the coming months, if it is to survive.

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Post ID: @1usv+16A44735

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