Nordstrom just announced plans to expand its service-centered Nordstrom Local concept from three Los Angeles-area locations into New York City. Like their brethren, the two new locations—one at The Greenwich Lane in the West Village, the other on the Upper East Side—will carry no merchandise and are tiny compared with the typical mall-based Nordstrom department store. Yesterday's media coverage … Continue reading Nordstrom’s ‘Local’ expansion has national implications for retail
Last month, Chico's announced it plans to close 250 stores. Recently, H&M decided to shutter 160 locations. Last week, Charlotte Russe said it will close nearly 100. Of course, this is hardly a new phenomenon. In recent years, dozens of chains have concluded that a meaningful percentage of their stores are suddenly superfluous. I'm not talking about the … Continue reading Why are some retailers only now realizing they have way too many stores?
It's hardly news that the retail industry is going through significant contraction of selling space as an uptick in bankruptcies and outright liquidations forces hundreds of locations to close en masse. In addition, dozens of struggling retailers continue to shutter outlets hoping to improve profitability or avoid a similar fate. In fact, there is a … Continue reading For a growing number of retailers, small is the new black
Last week Cowen and Co. retail analyst Oliver Chen downgraded Nordstrom shares, and the stock promptly tumbled. Among the concerns he cited were declining comparable store sales at both Nordstrom's full-line department stores and the Rack off-price division. There's a real risk to misunderstanding what is really going on. One of the things were going to need … Continue reading Nordstrom and retail’s growing urgency to rethink performance metrics
For a couple of years now pundits, analysts, journalists and various other retail observers have been advancing the "retail apocalypse" narrative. A typical story or opinion piece warns of the "death of the mall," points out how "e-commerce is eating the world," and generally suggests that "traditional" retailers are toast. Alas, facts are stubborn things, as I … Continue reading These brands apparently did not get the ‘retail apocalypse’ memo