After the Q2 results, the loss is bigger than expected. I understand it’s a struggle to keep Nordstrom's business going, but the CEO should protect the workforce just as much as he is protecting and enhancing company's liquidity. The future is clear - he will do anything to save money at the expense of workers.
https://chainstoreage.com/nordstrom-posts-q2-loss-sales-plunge-53
Nordstrom had goals of $20B in sales and stalled out at $15B – Amazon did $22B in apparel last year. Unless vendors become allergic to money, they will learn to accept the idea of selling on Amazon. All Amazon has to do really is improve packaging from a plastic envelope to a box with a hanger that unfolds the garment as the box is opened...
Whatever for? Read the article link I sent below, they're scary serious this time:
"Industry sources who spoke with WWD said it will operate similar to the concession model seen in department stores and specialty retailers, where brands effectively lease space or pay a percentage of sales to run their own mini-shops within the store. On Amazon’s new platform, according to WWD, the companies will have complete control over the look of their online space, which products they sell (or don’t), and any discounts they offer. At the same time, they’ll have access to Amazon’s vast logistics network for fast delivery, as well as its customer service."
What about Amazon acquiring Nordstrom?
Well, who's the workforce now? Is it salespeople on the floor in a shiny FLS, or some guy who tunes the associated-items-and-outfits algorithm from his cubicle in Seattle?
The shift began years ago, with the early skirmishes over commissions for items bought in-store via the web channel, and with online items returned to the stores.
And if Nordstrom triages itself down to a web store plus other surviving bits, then how long can it hold off against the juggernaut:
https://qz.com/1781553/amazon-said-to-be-launching-new-luxury-fashion-platform/
If in the long-run it's a battle of supply-chains and hyper-efficiency, you. cannot. win. Amazon will eat your breakfast, lunch, and dinner.
The response would be, well, we have the stores, we have the physical presence and the best customer service. Now that's the Catch-22. The stores have to go, but they are the heart of this company.
Northgate had real monkeys back in the day.