Mexican Department Store Liverpool Buys 9.9% Stake in Nordstrom
PYMNTS.com
Two high-end department stores reportedly have a closer relationship now, as the parent company of Mexican chain Liverpool has reportedly acquired a 9.9% passive stake in U.S. chain Nordstrom for 5.9 billion pesos ($293.8 million).
Reuters reported Thursday (Sept. 15) that Liverpool said in a statement about the acquisition, “This operation represents an attractive opportunity to diversify assets geographically.”
According to a filing made by the retailer’s parent company, El Puerto de Liverpool, with the Securities and Exchange Commission (SEC), the company he shares of Nordstrom on Sept. 8.
Liverpool operates 122 stores throughout Mexico, each with departments that include technology, apparel, housewares, furniture and cosmetics. It has locations in 69 cities in the country, adding up to 1.5 million square meters (16.2 million square feet) of floor space, according to its parent company’s website.
The company’s most recent earnings release said that El Puerto de Liverpool’s total revenues increased 13.4% during the second quarter, while Liverpool’s same-store sales rose 14%.
It also reported in the release an improvement in commercial margin, attributing this to good inventory management, full-price sales and product mix.
“One of our main strategies is to have better value-added service offerings for our customers,” Liverpool said in the release, pointing to its services around devices, suit rentals and design.
Nordstrom’s most recent earnings materials reported that the company’s net sales increased 12% year over year during the quarter, but that they began slowing in late June.
Company executives said the company had seen macroeconomic pressures taking a toll on its lower-income consumers during the quarter.
“While our quarterly sales were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack,” Nordstrom CEO Erik Nordstrom said in the earnings release.
