Mexican Department Store Buys 9.9% Nordstrom Stake

Two high-end shops reportedly have a better relationship now, because the guardian firm of Mexican chain Liverpool has reportedly acquired a 9.9% passive stake in U.S. chain Nordstrom for five.9 billion pesos ($293.8 million).

Reuters reported Thursday (Sept. 15) that Liverpool mentioned in a press release concerning the acquisition, “This operation represents an attractive opportunity to diversify assets geographically.”

According to a filing made by the retailer’s guardian firm, El Puerto de Liverpool, with the Securities and Exchange Commission (SEC), the corporate acquired the shares of Nordstrom on Sept. 8.

Liverpool operates 122 shops all through Mexico, every with departments that embody expertise, attire, housewares, furnishings and cosmetics. It has areas in 69 cities within the nation, including as much as 1.5 million sq. meters (16.2 million sq. toes) of ground area, in response to its guardian firm’s website.

The firm’s most up-to-date earnings release mentioned that El Puerto de Liverpool’s complete revenues elevated 13.4% through the second quarter, whereas Liverpool’s same-store gross sales rose 14%.

It additionally reported within the launch an enchancment in industrial margin, attributing this to good stock administration, full-price gross sales and product combine.

“One of our main strategies is to have better value-added service offerings for our customers,” Liverpool mentioned within the launch, pointing to its providers round units, go well with leases and design.

Nordstrom’s most up-to-date earnings supplies reported that the corporate’s internet gross sales elevated 12% yr over yr through the quarter, however that they started slowing in late June.

Read extra: Nordstrom Reports Lower-Income Consumers Dialing Back on Spending

Company executives mentioned the corporate had seen macroeconomic pressures taking a toll on its lower-income customers through the quarter.

“While our quarterly sales were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack,” Nordstrom CEO Erik Nordstrom mentioned within the earnings launch.

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