Nordstrom Reportedly Postpones Anniversary Sale on Coronavirus Concerns
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Nordstrom has reportedly delayed its annual Anniversary Sale due to business concerns stemming from the coronavirus pandemic.
The Seattle-based retailer told FN’s sister publication WWD that it has postponed the online shopping event, which was slated for July, until August. Its website, however, still touts the Anniversary Sale for July 2020.
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What’s more, WWD obtained a letter to vendor partners, in which Nordstrom wrote that it was suspending the orders of full-price merchandise for the months of June and July. It had already halted orders for April and May.
FN has reached out to Nordstrom for confirmation and comment.
The department store chain has already forecasted a rocky road ahead as the outbreak keeps its stores closed. In a filing with the Securities and Exchange Commission last week, Nordstrom revealed revenue expectations for the quarter ending May 2 to be “adversely impacted in a significant manner” by the virus. It added that if store closures continued for an “extended period of time,” its financial situation could “become distressed.”
“The disruption to the global economy and to our business, along with a sustained decline in our stock price, may lead to triggering events that may indicate that the carrying value of certain assets … may not be recoverable,” Nordstrom said in the filing.
The majority of the company’s workforce — including a portion of its corporate staff — has either been furloughed or assigned zero hours of work. CEO Erik Nordstrom and president Pete Nordstrom have forfeited their own salaries from April to September, while other members of the executive leadership group are taking reductions in pay.
While Nordstrom’s online operations and distribution warehouses remain open, all of its outposts are temporarily shuttered across the Nordstrom, Nordstrom Rack, Trunk Club, Jeffrey, Nordstrom Local and Last Chance banners for an indefinite period of time.
The retailer also previously announced that it would cut costs by $500 million in operating expenses, capital expenditures and working capital, as well as draw down $800 million on its revolving credit facility.
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