Nordstrom's holiday sales disappoint as consumer spending slows

[Yo_Mama_Been_Loggin]

There's more evidence that cash-strapped shoppers are pulling back amid economic uncertainty.

Last week, Nordstrom (NYSE: JWN) shared disappointing holiday sales figures, trailing the same period last year by 3.5%. In turn, the Seattle-based retail chain is slashing its 2023 outlook for the second time in less than six months.

"The holiday season was highly promotional, and sales were softer than pre-pandemic levels," CEO Erik Nordstrom said in a news release. "While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment."

For months, Nordstrom leadership has warned that a slowdown in spending, primarily from customers at its clearance brand Nordstrom Rack stores, was hurting sales. Higher-income shoppers, however, were still "seeking newness," the CEO said.

https://www.bizjournals.com/seattle/news/2023/01/23/nordstrom-holiday-sales.html

Time for another billionaire tax cut - Kevin McCarthy

[BlueWaveNeverEnd]

1. walked thru Nordstrom today, to enter the mall, stuff looks pricey

[Bristlecone]

2. I was in there the other day and it's expensive, and some of the quality is sub par

I have been buying Nordstrom Men’s Shop Classic dress shirts for a long time. They are(used to be) thick Egyptian cotton, comfortable in all weather, and long lasting. They also are priced reasonably. They are now made of a paper thin, crappy “tech cloth, no-iron” material and ALWAYS a smallish fit.

Now I know I’ve picked up a pound or two over the years. But my old shirts fit perfectly. The new ones, not do much at the same sizing.

I am convinced the “slim” or “traditional fit is a way to use less fabric and charge the same $. More in many cases. Most of this stuff goes straight to Nordstrom Rack to get picked through en masse.

[bamagal62]

3. Well, something's happened

To Nordstrom. I used to love to shop there. Now, I walk in and it all seems like crap. The quality of merchandise has gone way down. I rarely buy from there these days. Not sure what happened.

[bamagal62]

4. And, has anyone been in a Nordstrom Rack

These days? It’s like they’ve manufactured a bunch of crap to sell at discount prices. It used to be a place you could score some great deals. I find better stuff at Target or Costco.

[JNelson6563]

5. Very interesting.

Ok so what Mr. Nordstrom is saying is that the people who have lots of money and can afford nordstrom prices are doing fine. Those who can't actually afford to shop there but do anyway (credit cards) aren't doing so.

It's as though eggs at $8 a doz and grocery gouging in full swing is a broader thing among those who aren't wealthy. Or something.