Erik and Pete Nordstrom are hoping to wrap up a little bit one thing particular this vacation season — the corporate based by their great-grandfather.
Sources mentioned the Nordstrom household and El Puerto de Liverpool are near signing a deal to purchase Nordstrom Inc. and that an settlement might come collectively as early as this week.
If not, it’s understood that the method is being nudged towards a conclusion this yr.
Nordstrom didn’t instantly reply to a WWD request for remark late Wednesday.
The household and the Mexican retailer supplied to purchase Nordstrom for $23 a share, or $3.8 billion, in September — seven years after the Nordstroms tried to purchase the corporate at $50 a share and have been rejected.
It’s not clear simply how the most recent supply has developed in negotiations with a particular committee of the corporate’s board. However the preliminary bid revealed this fall was financed by rollover fairness and money commitments from the household and Liverpool in addition to $250 million in new financial institution financing. Debt already carried by Nordstrom was envisioned staying in place.
The mix of the Nordstroms and Liverpool can be troublesome to outbid because the household owns a few third of the corporate’s inventory and Liverpool holds a virtually 10 p.c stake.
Erik Nordstrom leads the enterprise as chief government officer and his brother Peter is president and chief model officer, however taking the enterprise personal would give them an opportunity to reset the division retailer away from the prying eyes of Wall Avenue.
The retailer has lengthy been recognized for its customer support and savvy merchandising, however like different department shops is trying to find simply the correct mix for immediately’s panorama.
For the 9 months ended Nov. 2 the corporate posted $128 million in internet income as gross sales elevated 4.3 p.c to $10.4 billion.
Erik Nordstrom advised analysts final month: “Within the third quarter, our efforts to boost the shopper expertise proceed to resonate, enabling development in internet and comparable gross sales, margin enlargement and a rise in our buyer base.
“Each Nordstrom and Nordstrom Rack delivered 4 p.c comparable gross sales development. We’re notably inspired that our on-line enterprise sustained its momentum with digital gross sales development of over 6 p.c. Prospects responded to newness and our number of the manufacturers that matter most to them, driving constructive whole firm internet gross sales development for the fourth consecutive quarter.”
The corporate is specializing in three priorities for the yr — driving development on the Nordstrom banner, optimizing operations and constructing on the momentum on the Rack.
“As an omnichannel retailer, we’ve to be ready to serve prospects when, the place and the way they wish to store, and repair is all the time our #1 precedence,” the CEO mentioned. “Our prospects outline what good service is, not us, and our groups are very targeted on taking good care of each buyer who store with us. We take this dedication to serving our prospects severely from the preliminary greeting, to offering help and a viewpoint on the becoming room, to finishing the sale. For our prospects that choose to buy on-line, we purpose to make the expertise seamless and interesting by expertise.”
For the total yr, comparable gross sales development is slated to rise by 1 to 2 p.c.