Nordstrom, Inc. (NYSE: JWN) is up over 12% this morning after announcing its plans to consider going private. The press release by the retailer announced the formation of the “Group,” a collection of family members Blake W. Nordstrom, Peter E. Nordstrom, Erik B. Nordstrom, James F. Nordstrom, Bruce A. Nordstrom, and Anne E. Gittinger, that would debate the next moves of the company. The board of directors has created what is being dubbed the “Special Committee” to review any possible proposition put forth by the Group.
After years of falling stock value resulting from rising e-commerce competition from companies like Amazon.com, Inc., traditional brick and mortar stores are attempting to find new ways to stay alive. Over the long term, shares have been declining in value for years. In 2015, the stock was trading around $73 per share and has suffered major drops since. Not even the typical holiday season lift could bring its share close to that price.
Many retail stocks are taking beatings as company after company release projections. Most recently, Macy’s announced gross margin decreases by one percent, which took other stocks, including Nordstrom, down with it.
The Seattle based, 116-year-old company has made no commitment to any course of action.