JWN. "However, some analysts question the aggressive Rack expansion given the banner's past underperformance relative to competitors like TJX and Ross Stores. They suggest Nordstrom should prioritize revitalizing its full-price stores to avoid further declines"
This is a maybe.
Abercrombie stockholders have reaped the rewards for finding what customers want. And as you've pointed out, GAP has now done that too (to my surprise), and the stockholders have seen shares really rise today. I see J Jill, LEVI (congrats to those here who're in it) hit a new high today too.
JWN may be a different animal, being more upscale. I've gone through their stores -- sometimes no customers, sometimes just browsers. The Rack though, as I've mentioned here maybe a couple of times, those stores always seem busy, always with a line formed for the several checkout stations. Reason I have bought and held. (And for the potential buyout, but that is more iffy.) Why would you not give customers what they want --- open more of those Racks! If you haven't got upscale clothes that people will come into the 'regular' Nordstroms for, then consider closing more of those stores, if you can't find the key to lure customers.
Relevant to upscale Nordstrom's, I'm holding upscale brands Capri at a loss. It's doing a business, but not enough. (Another upscale retailer is trying to acquire it, but fed gov't says, no. The companies are challenging fed decision.)
If people are cutting back on clothing purchases, it doesn't seem to be everywhere. I also don't see overall declines in the stocks of shoe manufacturers or shoe store chains -- Some shoe mfgers (sneakers/runners) are at new highs, as are some shoe retailers (Shoe Carnival today for example). |
