Nordstrom has tapped consulting firm AlixPartners to advise on a potential spinoff of Nordstrom Rack, the department store’s off-price retail brand, according to a Bloomberg report.
Nordstrom has been dissatisfied with Rack’s performance during the 2021 economic recovery. Rack’s third quarter sales totaled $1.19 billion – up 35% from the same period in 2020 but down 8% from 2019. Nordstrom’s main business, meanwhile, had Q3 2021 sales growth of 3% over Q3 2019.
CEO Erik Nordstrom said in a November earnings call that the company had hired consultants to help improve Rack’s performance and profitability. “We are not satisfied at all with our Rack business as clearly our recovery is lagging what we think it should be,” Nordstrom said.