What Myer can learn from US retailer Nordstrom
Myer’s share price recently fell 16 per cent following another lousy result, and is down 50 per cent since reaching $4 four years ago. In contrast, the share price of US retailer Nordstrom has doubled over the same period.
Nordstrom has 270 stores located in 36 states across the US under three brands, Nordstrom, Nordstrom Rack, and Jeffrey. Nordstrom generally sells high-end brand name and private label fashion to children and adults, similar to Myer.
The companies have some other differences, but there’s no reason why Myer couldn’t move upscale if it wanted to. Management has preferred instead to leave David Jones as the more upscale rival.
Unlike Myer, however, whose sales have gone nowhere over the past four years, Nordstrom’s sales have increased nearly 50 per cent. The question Myer shareholders should be asking is why are Nordstrom’s sales increasing so fast while Myer’s have stagnated, despite the strength of Australia’s economy.
One of the key reasons is that Nordstrom’s management has been prepared to think long term by investing billions in technology so customers can easily compare, buy, try and return goods using the company’s store and online network. Sydney Morning Herald – Read more…
Nordstrom has 270 stores located in 36 states across the US under three brands, Nordstrom, Nordstrom Rack, and Jeffrey. Nordstrom generally sells high-end brand name and private label fashion to children and adults, similar to Myer.
The companies have some other differences, but there’s no reason why Myer couldn’t move upscale if it wanted to. Management has preferred instead to leave David Jones as the more upscale rival.
Unlike Myer, however, whose sales have gone nowhere over the past four years, Nordstrom’s sales have increased nearly 50 per cent. The question Myer shareholders should be asking is why are Nordstrom’s sales increasing so fast while Myer’s have stagnated, despite the strength of Australia’s economy.
One of the key reasons is that Nordstrom’s management has been prepared to think long term by investing billions in technology so customers can easily compare, buy, try and return goods using the company’s store and online network. Sydney Morning Herald – Read more…
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