×
112
Fashion Jobs
BEELINE
Sales Director UK/Roi (f/m/d)
Permanent · LONDON
HTNK
Enterprise New Business Manager (UK)
Permanent · LONDON
SHISEIDO
Bareminerals Account Manager - Hoopers, Wilmslow (Maternity Cover) (37.5)
Permanent · Manchester
SHISEIDO
Bareminerals Account Manager - Debenhams, Dundee (37.5)
Permanent · Dundee
SHISEIDO
Bareminerals Account Manager - Debenhams, Winchester (Maternity Cover)
Permanent · Hampshire
SHISEIDO
Account Manager - Debenhams
Permanent · BURY SAINT EDMUNDS
SHISEIDO
Shisiedo Group Fragrance Account Manager - John Lewis, Brent Cross (22.5)
Permanent · London
SHISEIDO
Training Manager - Fragrance
Permanent · London
UNDERGROUND
PR Showroom And Social Media Internship
Internship · LONDON
SANDRO UK
Flagship Assistant Manager - Central London m/f
Permanent · LONDON
OUKA LONDON LTD
Social Media Intern
Internship · LONDON
MD-DA LTD
Sales & Marketing Assistant
Internship · LONDON
A.T. STUDIO
Photography Internship
Internship · BURNLEY
LONDON ORGANIC PR
Student Brand Ambassador
Internship · LONDON
THE POSITIVE COMPANY
e Commerce Internship (Flexible Location)
Internship · LONDON
BA&SH
Key Holder f/m - Full Time - London
Permanent · LONDON
BA&SH
Sales Assistant f/m - Full Time - London
Permanent · LONDON
NIKE
Nike Part Time Athlete (Sales Associate)
Permanent · Stoke-on-Trent
NIKE
Nike Coach (Service And Training Manager)
Permanent · Stoke-on-Trent
NIKE
Assistant Head Coach (Assistant Store Manager)
Permanent · Taplow
ALPHAOMEGA LONDON
Digital Marketing Assistant
Internship · LONDON
NAMED MODELS
Model Booking Assistant
Internship · LONDON

Nordstrom to pay half rent for the rest of 2020

Published
Jul 7, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

As retailers continue to struggle with the impact of the Covid-19 pandemic, department store operator Nordstrom has reportedly informed the landlords of both its full-price namesake locations and its off-price Nordstrom Rack stores that it will only pay half of its occupancy costs for the rest of the year.


Nordstrom has told its landlords that it will pay half rent for the rest of 2020 - AFP/Timothy A. Clary

 
The announcement came in a letter written by the retailer’s president of stores, Jamie Nordstrom, to involved property owners, which was obtained by Retail Dive.
 
According to Retail Dive’s report, the letter also stipulated that Nordstrom will use store comps as the basis for any possible “true up rent payment, up to a full reconciliation should 2020 sales reach 90% of sales made in that location in 2019,” while also reassuring landlords that the company “will continue to maintain insurance coverage, pay utilities on which we are the account holder, and maintain your building(s) as required by the lease.”

The news follows Nordstrom’s confirmation of reports concerning a planned reduction in its workforce, a move which a spokesperson for the retailer said is part of a wider strategy to cut overheads by 20%, without specifying the number of employees who would be affected by the measures.
 
A Sourcing Journal report published prior to Nordstrom’s confirmation of the strategy cited unnamed sources who stated that the job cuts could affect up to 25% of the retailer’s workforce, not counting associates who will be dismissed due to the planned permanent closure of 16 Nordstrom locations.
 
In 2019, the department store chain’s workforce counted some 68,000 employees, including both full and part-time associates.
 
In the first quarter ended May 2, 2020, Nordstrom’s net sales totaled $2.03 billion, down 40% from $3.35 billion in the prior-year period, while the retailer’s net loss came to $521 million, or $3.33 per diluted share, compared to net income of $37 million, or $0.23 per diluted share, in the first quarter ended May 4, 2019.
 
The company attributed the declines to temporary store closures implemented in response to the coronavirus crisis, highlighting that it continued to see positive sales growth into February, before Covid-19 began its rapid spread in the U.S.
 
Despite the disruption caused by the coronavirus, CEO Erik Nordstrom was still optimistic when the retailer announced its Q1 financial results at the end of May, affirming, “we’re entering the second quarter in a position of strength, adding to our confidence that we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term.”
 
Nordstrom isn’t the only retailer holding out on rent payments in the wake of Covid-19, with both Gap and Ross having recently faced legal action due to their failures to fulfill their lease obligations.

Copyright © 2020 FashionNetwork.com All rights reserved.