Recently a roughly $8.4 billion offer from the Nordstrom family to take the namesake retailer private was rejected as inadequate. The deal now seems at risk as the special committee in charge of evaluating a potential transaction indicated that the price needed to be "substantially" and "promptly" improved upon or they would terminate further discussions. While … Continue reading Going Private Could Be The Best Thing To Ever Happen To Nordstrom; With One Big Caveat
I'm amazed that Wall Street analysts are "surprised" that as hot brands get bigger (think Michael Kors, kate spade), their level of discounting increases. Apparently they were all sleeping during their first year economics course when supply and demand was covered. Whether it's Walmart or Chanel, at the center of any brand's customer bullseye … Continue reading The discount ring
When was the last time you went to Macy's or Bed, Bath & Beyond or any furniture store and paid full-price? Did you actually pay for shipping on any e-commerce purchases during the holiday? At most retailers, regular price is the sucker price. You only pay it out of desperation or ignorance. Walk through any … Continue reading Discount Nation and the sucker price
Last holiday season I coined the term "surgical shopping" to describe the highly precise way many consumers were purchasing. While the panic of late 2008 and early 2009 subsided, consumers were only gradually opening their wallets, focusing primarily on needs vs. wants and often trading down to brands that gave very clear bang for the … Continue reading Surgical Shopping and the Hangover Market
One of the hottest retail segments right now is the outlet or off-price market. Nordstrom, Saks and Neiman Marcus are opening more "clearance" stores than full-line stores. Bloomingdale's and Lord & Taylor have recently announced plans to open their own off-price formats. Hundreds of manufacturers' outlet stores from Ralph Lauren to Coach to Nike can … Continue reading “Faux Clearance”: Do Outlet Store Customers Care?