Nordstrom said Monday it was slashing 400 jobs at its corporate headquarters.
The move comes two months after the department store chain reported a 3% drop in comparable sales for its fourth quarter, and forecast that profit per share would fall 30% in the first half of this year.
The
cuts confirm a terrifying new reality for high-end retailers: Wealthy
shoppers are reining in spending and — along with the rest of American
consumers — refusing to pay full price for anything.
Nordstrom
inventory increased 12% in the most recent quarter — a sign that the
chain is having a hard time clearing its shelves, and will likely have
to rely on promotions to sell the merchandise.
That can be a risky strategy, particularly for a high-end retailer, because too many promotions can cheapen the brand.
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