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Trouble for Nordstrom
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Business New Haven
9/18/2000
By: BNH
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SEATTLE - Nordstrom Inc., whose putative agreement to open a department store at the proposed Long Wharf mall was greased by a promise from the developers to pay the company a reported $20 million to locate here, is itself in trouble. The September 8 Wall Street Journal reported that “a pile of problems,” including several seasons of declining sales, have led Nordstrom directors to show chairman and CEO John Whitacre the door earlier this month. Whitacre was the first person outside the Nordstrom family to hold those titles when he took sole management control of the retailer in 1996. Now the board has returned control to the Nordstroms, who own a 36-percent equity stake in the company. The Journal reports that Nordstrom's attempt to reinvent itself as a trendy shop for young fashion-buyers has been a flop with consumers. Nordstrom shares closed at $18.375 on September 7, down from a 52-week high of about $34.50. And for its fiscal second quarter ended August 31, the company reported a 36-percent plunge in net income to $45.5 million.
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