Nordstrom’s Low Inventory Is Good For Sales Outlook
There is a lot we can all learn from Nordstrom’s management and its handling of store inventory during these challenging times. To my knowledge, it is the only retailer that has reported a 25% reduction of inventory at the end of the first quarter during the COVID-19 pandemic. Management’s quick action to reduce purchases and receipts now gives them a lot more flexibility to make strategic buys – for their main stores to acquire promotional merchandise at very low prices and fresh new merchandise to create a fabulous impression or to pick up merchandise for the Rack that can be sold at an opportune moment. However, that favorable inventory position does not mean the company had a fabulous quarter. It felt the impact of the national lockdown that has been in place these past many weeks. Read more at Forbes.
