Nordstrom Is Slashing Jobs—Are Luxury Shoppers Going Down?
Nordstrom announced Monday it’s dropping 400 jobs at its corporate HQ just two months after reporting a 3% drop in comparable sales last Q4.
The high-end retailer forecasts profits/share will fall 30% in the first half of this year alone, making the company the latest in a recent series of struggling retailers, Business Insider reports.
These cuts confirm retailer’s worst nightmare: even wealthy shoppers are reining in spending, and they refuse to pay full price for anything. And discounts aren’t working like they used to—Restoration Hardware, a firm that caters to high-end customers, says discounts of even 75% are failing to boost sales as much as in previous years.
Nordstrom's job slashing follows similar moves last year by retailers including Macy's, JCPenney, Neiman Marcus and Target. [BI]