Shares of Nordstrom Inc and Gap Inc slumped more than 20% on Wednesday as warnings of product shortages during the crucial holiday season raised fears that the retailers were losing out to better-prepared competitors.
Nordstrom Inc said labor costs pinched its quarterly profit and warned of product shortages at its off-price stores heading into the holiday season, sending its shares down 23% in extended trading on Tuesday.
The department store chain has teamed up with the sports merchandise company to launch licensed sports fan products from leagues including the NFL, NCAA, NBA, and MLB, on the Nordstrom.com e-commerce platform.
Major clothing and shoe companies are moving production to countries closer to their U.S. and European stores, smarting from a resurgence in cases of coronavirus in Asia that slowed production earlier this year.
Many consumers are entering the holiday season with more disposable income, but retailers are up against a supply chain crisis that has left them scrambling to stock enough partywear, among other things.
New analysis of online search and social media activity has come up with the world’s most popular department stores. The top 10 is dominated by American and British names with New York and London the key destinations.
Premium fashion retailer Reiss has this week unveiled the first-ever kidswear offer that it flagged with its results last month. The company has created an upscale line that reflects the wider brand’s overall profile.
The comeback of Laura Ashley in the fashion sector has begun as Batsheva Hay’s eponymous Batsheva label has linked up with the UK brand in a way makes the most of its heritage and targets the upscale shopper.