Nordstrom Family Reportedly Wants to Increase Stake in Retailer
A group of Nordstrom family members are interested in increasing their stake in the department store, according to CNBC. Currently the group owns 31.2 percent of Nordstrom, and they're reportedly working on a proposal to raise their ownership stake to at least 50 percent. Last year, the family decided not to take Nordstrom private after an initial offer of $50 a share was rejected as too low. In recent weeks, shares of the department store have decreased almost $20 below that offer. Year to date, Nordstrom's shares are down nearly 30 percent, but its shares were up more than 8 percent on Thursday, giving it a market value $5 billion, CNBC reported.
Total Retail's Take: Lately, investors have been questioning whether there's a need for physical department stores since many shoppers buy directly from brands or shop online. However, Nordstrom has loyal customers who shop online and in-store, including at the retailer's off-price sister store, Nordstrom Rack. If the Nordstrom family does go through with this proposal and ends up with a larger stake in the company, it might help the company have more of a direct vision for the department store that isn't as influenced by other investors’ opinions. The family could focus on endeavors like the New York flagship store set to open in the fall, as well as ways to further integrate its online and offline channels.