Nordstrom going to Private Equity?

[ClownLoach]

https://www.cnbc.com/2024/03/19/nordstr ... ivate.html

Normally I am very much against private equity retail deals, but I think Nordstrom management has proven itself to be so incompetent the last decade plus that anything would be an improvement. They bet the farm on eCommerce which is not their strength at all and forces them to compete on price wherever they are not selling exclusive items. They spent a fortune on a failed Canada expansion that has now liquidated. They have lost their way on merchandising. Inventory management is horrible. And they seemingly could cut many expenses while actually improving the customer experience from what I see. Also I believe most of their real estate is leased (after many leaseback deals the last decade) so anyone acquiring them would be doing so for the business itself instead of just trying to steal the assets and strip the company like the people Macy's is fighting off.

[pseudo3d]

From what I've heard, their pickup/delivery stuff is all store-based, it's not directly out of a warehouse, so an employee has to go in, find the item in question (if it's in stock) and then package it up. (I had a coworker several years back who used to work at a Nordstrom.)

[ClownLoach]

From what I've heard, their pickup/delivery stuff is all store-based, it's not directly out of a warehouse, so an employee has to go in, find the item in question (if it's in stock) and then package it up. (I had a coworker several years back who used to work at a Nordstrom.)

Ship from store is an option but not their primary means, quite the opposite. They built a massive eCommerce fulfillment warehouse brand new in Fontana, CA that went online just a couple of years ago. You see it on the way to Las Vegas and they must be having staffing issues as it always has massive "now hiring" banners on it. When they went this way they also reduced the sizes kept in store substantially, forcing many customers to order online where it is easy to find the same product from a competitor for less. Prior to the fulfillment warehouses, they always kept every size in stock even if they didn't have room on the floor. I wear an unusual size dress shirt and they always had them in the men's stock room before so I could count on them to be in stock if I needed a shirt on short notice. That is no longer the case and I haven't bought anything from Nordstrom since they made the changes (store SKU reduction and fulfillment warehouses). The eCommerce returns from the warehouse get shipped to Rack stores. They need to immediately reverse this SKU reduction in stores as it is unnecessary; I think they did it to prop up the bad decision to open the eCommerce fulfillment centers by forcing customers to use them. Since they can ship from store as well it is inexcusable not to keep all the sizes in stock there; they built Nordstrom stores differently from other department store chains to handle keeping additional inventory.

[SamSpade]

From what I've heard, their pickup/delivery stuff is all store-based, it's not directly out of a warehouse, so an employee has to go in, find the item in question (if it's in stock) and then package it up. (I had a coworker several years back who used to work at a Nordstrom.)

Ship from store is an option but not their primary means, quite the opposite. They built a massive eCommerce fulfillment warehouse brand new in Fontana, CA that went online just a couple of years ago. You see it on the way to Las Vegas and they must be having staffing issues as it always has massive "now hiring" banners on it. When they went this way they also reduced the sizes kept in store substantially, forcing many customers to order online where it is easy to find the same product from a competitor for less. Prior to the fulfillment warehouses, they always kept every size in stock even if they didn't have room on the floor. I wear an unusual size dress shirt and they always had them in the men's stock room before so I could count on them to be in stock if I needed a shirt on short notice. That is no longer the case and I haven't bought anything from Nordstrom since they made the changes (store SKU reduction and fulfillment warehouses). The eCommerce returns from the warehouse get shipped to Rack stores. They need to immediately reverse this SKU reduction in stores as it is unnecessary; I think they did it to prop up the bad decision to open the eCommerce fulfillment centers by forcing customers to use them. Since they can ship from store as well it is inexcusable not to keep all the sizes in stock there; they built Nordstrom stores differently from other department store chains to handle keeping additional inventory.

This sounds like a friend of mine that has a bigger/taller frame. He had been taken to N's by a friend and when things didn't work out... no sale! I was kind of saddened to hear how the experience was.

As for me, most of my Nordstrom spending goes to their excellent restaurants, but that's about the extent of it. Rack is a very different place than it was a decade ago.

[ClownLoach]

From what I've heard, their pickup/delivery stuff is all store-based, it's not directly out of a warehouse, so an employee has to go in, find the item in question (if it's in stock) and then package it up. (I had a coworker several years back who used to work at a Nordstrom.)

Ship from store is an option but not their primary means, quite the opposite. They built a massive eCommerce fulfillment warehouse brand new in Fontana, CA that went online just a couple of years ago. You see it on the way to Las Vegas and they must be having staffing issues as it always has massive "now hiring" banners on it. When they went this way they also reduced the sizes kept in store substantially, forcing many customers to order online where it is easy to find the same product from a competitor for less. Prior to the fulfillment warehouses, they always kept every size in stock even if they didn't have room on the floor. I wear an unusual size dress shirt and they always had them in the men's stock room before so I could count on them to be in stock if I needed a shirt on short notice. That is no longer the case and I haven't bought anything from Nordstrom since they made the changes (store SKU reduction and fulfillment warehouses). The eCommerce returns from the warehouse get shipped to Rack stores. They need to immediately reverse this SKU reduction in stores as it is unnecessary; I think they did it to prop up the bad decision to open the eCommerce fulfillment centers by forcing customers to use them. Since they can ship from store as well it is inexcusable not to keep all the sizes in stock there; they built Nordstrom stores differently from other department store chains to handle keeping additional inventory.

This sounds like a friend of mine that has a bigger/taller frame. He had been taken to N's by a friend and when things didn't work out... no sale! I was kind of saddened to hear how the experience was.

As for me, most of my Nordstrom spending goes to their excellent restaurants, but that's about the extent of it. Rack is a very different place than it was a decade ago.

Exactly. All tall sizes and larger sizes were removed and sent to the eCommerce warehouse. Meanwhile the stock rooms that were built to hold more sizes sit empty.

I believe they changed out the leadership of the Rack operation a couple of days ago. Long overdue.

[rwsandiego]

...When they went this way they also reduced the sizes kept in store substantially, forcing many customers to order online where it is easy to find the same product from a competitor for less. Prior to the fulfillment warehouses, they always kept every size in stock even if they didn't have room on the floor. I wear an unusual size dress shirt and they always had them in the men's stock room before so I could count on them to be in stock if I needed a shirt on short notice. That is no longer the case and I haven't bought anything from Nordstrom since they made the changes (store SKU reduction and fulfillment warehouses)....

Same here. I haven't bought any dress or casual shirts there in a few years. They also significantly reduced their excellent private label merchandise for brands that, IMO, are overpriced for the merchandise.

Dillard's, on the other hand, always has tall and big sizes in store. Their merchandise is a bit less fashion-forward, but going to work isn't a fashion show. Additionally, fashionable merchandise that doesn't fit looks like hell.

[Super S]

From what I've heard, their pickup/delivery stuff is all store-based, it's not directly out of a warehouse, so an employee has to go in, find the item in question (if it's in stock) and then package it up. (I had a coworker several years back who used to work at a Nordstrom.)

Ship from store is an option but not their primary means, quite the opposite. They built a massive eCommerce fulfillment warehouse brand new in Fontana, CA that went online just a couple of years ago. You see it on the way to Las Vegas and they must be having staffing issues as it always has massive "now hiring" banners on it. When they went this way they also reduced the sizes kept in store substantially, forcing many customers to order online where it is easy to find the same product from a competitor for less. Prior to the fulfillment warehouses, they always kept every size in stock even if they didn't have room on the floor. I wear an unusual size dress shirt and they always had them in the men's stock room before so I could count on them to be in stock if I needed a shirt on short notice. That is no longer the case and I haven't bought anything from Nordstrom since they made the changes (store SKU reduction and fulfillment warehouses). The eCommerce returns from the warehouse get shipped to Rack stores. They need to immediately reverse this SKU reduction in stores as it is unnecessary; I think they did it to prop up the bad decision to open the eCommerce fulfillment centers by forcing customers to use them. Since they can ship from store as well it is inexcusable not to keep all the sizes in stock there; they built Nordstrom stores differently from other department store chains to handle keeping additional inventory.

Nordstrom is far from the only chain that has done this. Stores such as Fred Meyer and even JCPenney have quietly scaled back big & tall sections. Fred Meyer was once reliable for having Carhartt shirts in stock, now you are lucky to find anything above a 2XL (and more locations have this locked up now) I also have had a hard time finding pants I need for work at JCPenney, who was once reliable for this, and when I can find them, Charging the full MSRP of $80.00 for a pair of Dockers is just too much when I can buy them for half that online.

When it comes to work clothes I don't even waste my time in stores any more when I know my size. The chains have become too unreliable with inventory from one location to the next.

[storewanderer]

Nordstrom Rack has been a complete bastardization of the Nordstrom name as it has been expanded and has more and more products that are cheapened stuff that is Rack-specific. The best thing they could do is take their name off of Rack. The problem is if they did that, I'm not sure it would stay in business. And since it generates most of their sales/profits that would be a problem.

Where I see them going is ultimately their entire business is Nordstrom Rack. This would be a loss.

[ClownLoach]

Nordstrom Rack has been a complete bastardization of the Nordstrom name as it has been expanded and has more and more products that are cheapened stuff that is Rack-specific. The best thing they could do is take their name off of Rack. The problem is if they did that, I'm not sure it would stay in business. And since it generates most of their sales/profits that would be a problem.

Where I see them going is ultimately their entire business is Nordstrom Rack. This would be a loss.

Apparently they fully cleaned house this last month at the Rack operation. New leadership is taking over. They needed to do something as their Rack stores were so bad Ross and TJX had better presentation and inventory except for maybe shoes.

[storewanderer]

Nordstrom Rack has been a complete bastardization of the Nordstrom name as it has been expanded and has more and more products that are cheapened stuff that is Rack-specific. The best thing they could do is take their name off of Rack. The problem is if they did that, I'm not sure it would stay in business. And since it generates most of their sales/profits that would be a problem.

Where I see them going is ultimately their entire business is Nordstrom Rack. This would be a loss.

Apparently they fully cleaned house this last month at the Rack operation. New leadership is taking over. They needed to do something as their Rack stores were so bad Ross and TJX had better presentation and inventory except for maybe shoes.

I don't think Rack is nearly as awful of an environment as Ross, but it is multiple steps below the TJ Maxx or Marshalls formats. Rack just doesn't fit what I think the image of Nordstrom is. And the products Rack sells have become more and more obviously not Nordstrom level products...

There is a segment who likes shopping Rack and it makes them feel good to do so because they think it is "Nordstrom." Ever since COVID, Rack has such a lousy assortment of items, those customers who I know tell me they can't find anything they like there anymore. Many who used to visit once or twice a month no longer go there more than once or twice a year. Yet the Rack in Reno seems busier and busier. I suspect this is people new to the area or tourists who are disappointed to learn there is no Nordstrom here and settle for the Rack; and many have never heard of Dillard's. Or that they'd be better off at Macy's or Kohls even.