Nordstrom plans to split into two companies, report

Nordstrom is mulling weather to part into two companies, as indicated by a report.

The upscale, Seattle-based department store has employed AlixPartners, a counseling firm that worked with Saks Fifth Avenue when it isolated its dotcom business from its blocks and-mortar stores recently, news revealed; Alix likewise was as of late recruited by Macy’s to explore a similar transaction, the report said.

Nordstrom is looking at hiving off its off-price chain – Nordstrom Rack – into a separate company that could have a separate management team, as per the report, which refered to unknown sources.

Both AlixPartners and Nordstrom declined to remark.

The discounter has not performed as well as its sister chain, Chief Executive Erik Nordstrom said during a third quarter analyst call, adding that the company is “not satisfied at all” with Nordstrom Rack’s recovery from the pandemic.

For the quarter finished Oct. 30, deals for Nordstrom Rack totaled $1.19 billion, up 35% year-more than year, however down 8% from 2019.