Did Nordstrom Just Make a Mistake?
On Monday, Nordstrom (NYSE: JWN) announced changes to its senior leadership. Two long-tenured Nordstrom executives are retiring: chief marketing officer Scott Meden and Geevy Thomas, president of the Nordstrom Rack business. Their duties will be taken over by other members of Nordstrom's executive team.
Most notably, Jamie Nordstrom is taking the new role of chief stores officer, expanding his oversight beyond the company's full-line stores to the Nordstrom Rack off-price chain as well. The decision to have yet another insider lead the long-suffering Rack business looks like a big missed opportunity for Nordstrom.
A decade ago, Nordstrom unleashed an aggressive growth plan for its off-price unit, recognizing that value was becoming increasingly important to consumers. For a while, the growth plan was extremely successful. Nordstrom Rack's sales surged from $1.4 billion in fiscal 2009 and $1.7 billion in fiscal 2010 to $3.6 billion by fiscal 2014.
Source Fool.com
