Luxury retailer Nordstrom (NYSE:JWN) had a great month in June, with an 8.1% increase in same-store sales for the five-week period ended June 30. The company saw same-store sales rise only 0.9% in July; however, that was well beyond expectations for a decline in the metric of 2.7%.
Nordstrom is the kind of store that offers top brands and top customer service to the well-heeled consumer who isn’t extremely concerned with value, but who does love high-end brands. Nordstrom does, however, recognize that value shoppers are out there; it recently announced plans to add two new Nordstrom Rack outlet stores. Like TJX and Ross, Nordstrom Rack stores offer both value and brands. The cost of goods at Nordstrom Rack may be a lot more expensive than its deeper-discount competitors, but the principle of value and brands remains.