Nordstrom Cancelling Full Price Orders
Nordstrom, Inc, a leading fashion retailer based in the US, is cancelling full price orders meant for Nordstrom's department stores that are already placed with its supply partners in Asia.
In response to Fibre2Fashion's email asking how the company intends to support its suppliers during the current crisis, Nordstrom declined to comment. However, there are reports in the media that Nordstrom is delaying the payments to its suppliers and is taking extended terms.
According to a WWD report, Nordstrom had initially suspended all full price orders for April and May, and then it has followed up with a similar order cancellation for June and July months. The full price orders are meant for Nordstrom's department stores. The retailer also operates Rack off-price stores.
In this hour of crisis, suppliers from developing Asian nations like India and Bangladesh are expecting support from global brands/retailers, especially since apparel manufacturing is a labour-intensive industry and one of the largest employment generators.
As per Nordstrom's Supplier Website, w.e.f May 5, 2020, the company has updated purchase order standard terms from Net 45 days to Net 60 days. In addition, since April 11, 2020, the company is subjecting orders that arrive outside of the agreed-to window to return to vendor (RTV).
Founded in 1901 as a shoe store in Seattle, today Nordstrom (NYSE: JWN) operates 380 stores in 40 US states, including 116 full-line stores in the United States, Canada and Puerto Rico; 248 Nordstrom Rack stores; three Jeffrey boutiques; two clearance stores; six Trunk Club clubhouses; and five Nordstrom Local service hubs. Additionally, the company serves customers online in 96 countries through Nordstrom.com, Nordstromrack.com, HauteLook.com and TrunkClub.com. Erik Nordstrom is currently the chief executive of the company.