The news in the article describes the decline in sales of Nordstrom Inc. The decline in sales of this store comes after the dismal results of sales in Kohl’s Corp and Macy’s Inc. The sales of Nordstrom Inc. have slowed down during the last quarter. The company posted a decline in first-quarter sales. As a result, Nordstrom Inc. cut its full-year predictions. This has added an uninteresting outlook for all major department stores.
Nordstrom Inc.’s first-quarter revenue fell from $3.38 billion to $3.44 billion. This constitutes of 11%, indicating the highest fall of sales after Kohl’s Corp, which slumped by 12% (Suzanne & Nassauer, 2019). In the comparison between sales made in the previous year to those made this year, the article reports that in the previous year, buyers made purchases for commodities freely and willingly. However, this year, most customers have completely cut out their purchases while a few are making fewer purchases. This impact has been brought about by the higher tariffs that have been imposed on goods imported from China. The government placed 25% tariffs on an added $300 billion of products (Suzanne & Nassauer, 2019). Although, this tightening of conditions has not reduced the demand for goods, it has led to much softer sales especially in shares. However, the organization hopes to improve its sales and it has invested in brick and mortar
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I believe that this event is significant since it raises a concern of the trade war between United States and China. Further, this article is attention catching for it shows the adverse effects that major retail stores are facing. The figures are clearly outlined thus making it easier for readers to notice the huge sales lag in the major retail stores. This event requires that the organization come up with an alternative method for raising its sales, failure to which, it could hugely affect the future of the business leading to an increased slump in shares.
References
Suzanne, K. & Nassauer, S. (2019). Big Retailers’ Sales Lag as They Gird for Tariffs. THE WALL STREET JOURNAL .
