Nordstrom family concludes final attempt to acquire management control

Nordstrom Shakes Up Management and Plans Expansion

In the wake of the untimely death of Blake Nordstrom, a co-President and a talented retailer, the department store has undergone significant changes. The Nordstrom board of directors and co-Presidents Pete and Erik Nordstrom have recently created two new roles: chief merchandising officer, filled by Teri Bariquit, and chief operating officer, filled by Ken Worzel, both non-family members.

The department store, which no longer reports store comps due to the blurring of on and offline sales channels, has faced a decline in sales in its last quarter. Full-price net sales decreased by 6.5%, and off-price net sales decreased by 1.9%. However, total company digital sales increased by 4% and account for 30% of the business.

In an effort to adapt to the changing retail landscape, Nordstrom has been experimenting with new concepts. The department store opened its first full-line location in New York City, and subsequently, two merchandise-free Local stores in the city. The company is planning to expand this concept to top markets after its successful launch in Los Angeles and New York.

The SEC notice was issued shortly after the department store opened these merchandise-free Local stores in New York City, and just days after the opening of its first full-line location in the city. The notice did not provide information about potential candidates for the CEO position at Nordstrom, and it remains unclear whether the succession planning mentioned in the filing might ultimately lead to a restructuring of top management.

Analysts view the policy of not reporting store comps as a reflection of poor performance. UBS analysts earlier this year deemed Nordstrom "a no-growth retailer." However, Neil Saunders, GlobalData Retail Managing Director, stated that the company's focus on experimentation, including tech acquisitions, has helped it reach new customers, refine its merchandising, and explore cutting-edge retail concepts.

Nordstrom was an early investor in Shoes of Prey and Bonobos, the latter of which has since been acquired by Walmart. The department store operates HauteLook and Trunk Club.

The decision puts an end to any speculation that the Nordstrom family would regain control of the business, as they attempted to do two years ago with a take-private offer. For the latest updates, it would be best to check the official Nordstrom website or recent business news sources.