Nordstrom: A 'Powerful and Unique' Retailer
Shares of Nordstrom (JWN) fell earlier this week following its investor day, and the retailer's website and app experienced outages during early access to a big anniversary sale yesterday for the second year in a row. Chen has a Market Perform rating on Nordstrom shares, citing lower same-store sales and operating margins, but that doesn't mean he's not impressed with their long-term strategy. "The broader lesson for retail is our prediction that customer 'context' and 'engagement' will drive long-term competitive advantages for retailers–and there will be winners, consolidators–and losers." He thinks that Nordstrom will find success with its strategy, but in an environment that's becoming closer to a zero-sum game, that's a problem for rivals.