A UBS consumer survey of U.S. off-price and department-store retailers found that shoppers avoid Nordstrom Inc. JWN, -4.02% because of “high prices.” “We believe this is why Nordstrom’s full-price stores are losing more customers than they are gaining,” wrote analysts led by Jay Sole. Nordstrom is a luxury retailer selling brands like Fendi and Givenchy that have garments priced for thousands of dollars. But Nordstrom also sells merchandise from more affordable labels like Free People, an Urban Outfitters Inc. URBN, -1.95% brand, and Steve Madden SHOO, -1.85%. Nordstrom’s big Anniversary Sale begins on July 15 for all of the shopping public. Nordstrom’s off-price Rack business didn’t score well with shoppers either. The number two quality that those shoppers are looking for is value, but respondents said TJ Maxx, a TJX Cos. TJX, -0.92% chain, Burlington Stores BURL, -3.44% and Amazon AMZN, -3.28% offer more of it. “Plus, Nordstrom Rack’s customers’ perception of prices at Nordstrom Rack are getting worse,” UBS found. “We think this explains why Nordstrom Rack is struggling to maintain its level of loyal customers. Lastly, we note Nordstrom Rack customers are six times as likely to shop at Amazon as they are Nordstrom Rack when they shop online.” UBS rates Nordstrom shares sell with a $12 price target. Nordstrom stock is down 10.3% for the year to date. See: Nordstrom stock soars 35% after reporting bigger profits on fewer markdowns
