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Nordstrom is mulling weather to split into two companies, according to a report.
The upscale, Seattle-based department store has hired AlixPartners, a consulting firm that worked with Saks Fifth Avenue when it separated its dotcom business from its bricks-and-mortar stores earlier this year, Bloomberg reported; Alix also was recently hired 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, according to the report, which cited anonymous sources.
Both AlixPartners and Nordstrom declined to comment.
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 ended Oct. 30, sales for Nordstrom Rack totaled $1.19 billion, up 35% year-over-year, but down 8% from 2019.
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