A few weeks ago, Nordstrom announced that it is dropping Ivanka’s fashion products from its stores, citing poor sales as the reason. However, there was a lot of publicity surrounding this move. After the election of Donald Trump as the President of USA, a group called Grab Your Wallet publicly asked people to boycott Trump family products. Nordstrom was included in the list of stores to boycott. The boycott gained a lot of attention and it changed the perspective of several entrepreneurs. Nordstrom wanted to stay away from politics and it announced that the sales of Ivanka’s products haven’t been good and the retailer wanted to take it off the shelves.
Ivanka had disassociated herself from all businesses in favor of a quiet life after her father became the POTUS. Donald Trump didn’t take Nordstrom’s decision like a good sport. He had lashed out against the retailer on twitter claiming that his daughter had been treated unfairly. He said that Ivanka is a great person who pushes him always to do the right thing.
While the supporters of Grab Your Wallet applauded Nordstrom for his decision, the retailer faced a lot of protest from Trump supporters. Agitated Trump supporters created a video showing Nordstrom customers boycotting its products for discontinuing Ivanka’s products. Several ardent lovers of Nordstrom who are trump supporters decided to quit buying the retailer products. As much as 30% of the Trump supporters felt Nordstrom had done injustice.
Despite this anti-Nordstrom views, the favorable rating of Nordstrom remained at 46%. This means that the customers it lost in terms of Trump supporters were compensated by others who boosted the rating of Nordstrom. The social conversations surrounding Nordstrom didn’t have a huge impact, except for the fact that retailer’s name was shared in news. The negative publicity surrounding the retailer was slightly overwhelmed by the supporting news. The critics of Republicans offered their support for Nordstrom.
Nordstrom stood by its decision to lose Ivanka’s fashion line and repeated that the decision was made based on the performance of the brand. According to Wall Street Journal, Ivanka’s product sales dropped by 32%. Pete Nordstrom, president of the company said in a memo to his employees that the company’s move will always disappoint a portion of the customers. Every brand is only evaluated based on its performance.
In February, Nordstrom’s share showed a profit of $1.37 while the estimate was $1.15. The increase in profit is due to the retailer’s effort in reducing inventory and spending. Wall Street experts predict that the recent events only generate a noise surrounding Nordstrom and it won’t affect the performance of the shares of the retailers. Ivanka’s influence will be less than 1% on the average annual revenue of the retailer. In the bigger picture, this is negligible and it won’t have any noteworthy effect on the annual sales and revenue of Nordstrom. The president of Nordstrom also commented that Donald Trump’s views on the company policy will not have much of an impact.