Nordstrom withdraws 2020 guidance and closes stores in the U.S and Canada to combat Coronavirus

Nordstrom
(NYSE:JWN) joined other retailers in an attempt to minimize the fast
transmission of Coronavirus in North America as it ordered its stores in the
U.S and Canada to temporarily shut down on Monday. The American luxury
department store chain also withdrew its previous guidance for fiscal 2020.

Starting
from March 17^th, the upscale retailer said that all of its stores in
the U.S and Canada will remain closed for a period of two weeks. Further
decision regarding operations will be based on how the pandemic unravels in the
upcoming weeks. During this time, the retailer added, its websites and apps
will remain operations.

Nordstrom
Says Employees Will Receive Pay And Benefits During The Shut Down

Nordstrom
said that its employees are likely to receive pay and benefits from the company
during this period. The Seattle-based department store chain currently has 380
stores in total in 40 states. These include 248 Nordstrom Rack stores
(off-price) and 116 full-line stores.

In
an attempt to further reduce
expenses during the Coronavirus crisis, the company also
announced that its share buyback program has been suspended. In its statement
on Monday, Nordstrom said:

“While
February sales were in line with expectations, the company experiences a
broad-based deceleration in customer demand over the past couple of weeks,
particularly in markets most affected by the virus.”

The
flu-like virus caused significant disruptions for Nordstrom’s brick-and-mortar
segment in the U.S specifically in its primary markets like Los Angeles, New
York City, and Seattle.

Seattle
Is The Epicenter Of Coronavirus In The U.S

According
to the health authorities, Seattle marks the epicenter of Coronavirus in the
U.S with 904 confirmed cases reported so far in Washington State and 48 deaths.
Los Angeles and New York City also resorted to closing all bars, theaters,
restaurants, and movie houses to contain the outbreak.

Last
year in New York, Nordstrom launched a flagship store aimed at inviting new
customers. The store offered a myriad of services including fine-dining
restaurants, cafes, and a full bar.

Multiple
other retailers
like Guess and Casper have also opted to keep its stores closed
in the U.S in the next couple of weeks to minimize the spread of the virus
while ensuring pay and benefits for the employees.

According
to John Hopkins University stats, Coronavirus has infected over 4,300 people
and caused 80 deaths in the United States so far.

Nordstrom
dropped around 20% in the stock market on Monday following its announcement. At
£13.87 per share, the stock has declined over 50% in 2020 so far.