He has pushed for changes at the company as sales stagnate.Ĭohen withdrew a proposal to nominate two candidates for Nordstrom's board, but is keeping options open, including proposing board member changes again, according to a source familiar with the matter.Ĭohen declined to a request for comment. Activist investor Ryan Cohen, chairperson of GameStop and founder of Chewy, bought a stake in the company earlier this year through his investment firm, RC Ventures. Nordstrom's struggles have attracted outside scrutiny. Store traffic does not, however, capture how many items shoppers leave with or how much they're buying online at home. Year-over-year store traffic in April declined about 7% at Ross and about 3% at Burlington. In April, for example, store traffic was down nearly 16% year-over-year at Nordstrom Rack compared with about 3% growth at both T.J.Maxx and Marshalls. Maxx when compared with the year-ago period, according to monthly data from Placer.ai, which tracks retail foot traffic. Off-price players have been slower to move online as they focus on the in-person treasure hunt.īut store traffic at Nordstrom Rack has lagged behind traditional off-price banners such as Ross Dress for Less, Burlington, Marshalls and T.J. He said improving Nordstrom Rack's sales is one of its top priorities.ĭigital sales could give Rack an edge. In the company's recent letter to shareholders, Erik Nordstrom acknowledged the company fell short in the past year. Those include moves to eliminate store-based fulfillment of online orders and increase the minimum amount people must spend online to get free shipping. He said a little over half of Rack's sales decrease in the fiscal fourth quarter was driven by company actions to boost profits. The trend was more pronounced at Rack and among lower-income customers than at the chain's flagship stores. On a call with investors in March, he said the retailer saw shoppers pull back on spending in late June and through the holiday season. That's what we fixed."ĬEO Erik Nordstrom said shoppers have become more hesitant to spend. "If I went into a Rack store - and I've been working in this industry my entire life - if there's a brand that I've never heard of, probably not a great brand. That's probably not something our customers are looking for," he said. "If you went into a Nordstrom Rack, you saw a brand you've never heard of. Too many items came from brands fashion-forward customers didn't recognize, he added. Shelves swung between having too many items and too few. In an interview with CNBC, Chief Stores Officer Jamie Nordstrom said Rack locations got hit by inventory troubles during the Covid pandemic. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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