Adams ‘confident’ about Nordstrom in GGP mall

General Growth Properties Senior Developer Doug Adams talks to the SoNo Task Force last year.

General Growth Properties Senior Developer Doug Adams talks to the SoNo Task Force last year.

NORWALK, Conn. — Nordstrom had a higher net income for 2015 than Amazon.com, General Growth Properties Senior Developer Doug Adams said Saturday.

This was in response to a query from NancyOnNorwalk spurred by an article on Business Insider.com.

The article, headlined, “Nordstrom’s CFO makes crystal clear why online shopping is killing traditional retailers,” said Nordstom shares had “plummeted.” Another article said shares had “tanked as much as 7%.”

Nordstrom is one of two Class A retailers that have committed to be anchors in the mall GGP is planning for South Norwalk, The SoNo Collection.

The first article quotes Nordstrom CFO Michael Koppel as saying the company is struggling to keep up with online retailers, such as Amazon.

Amazon founder Jeff Bezos is an investor in Business Insider.

Adams said GGP is still confident that a physical mall can serve as an adjunct to online shopping, and that Nordstrom would be a strong anchor to The SoNo Collection.

But, “There is no question that retail is an industry that is constantly changing, and now more than ever. I have  become increasingly convinced that retailers need both a physical and online presence.  The smart retailers, like Nordstrom, are investing heavily in online platforms that certainly compress margins.  It is interesting that Nordstrom still made just a bit more net income in 2015 than Amazon.”

Market Watch reports that Nordstrom sales/revenue for 2015 was $13.51 billion and that Amazon’s was $107.01 billion.

Market Watch also reports that Nordstrom’s net income for 2015 was $720 million and that Amazon’s was $596 million.

“When I look around at myself, my family, my friends, and others I observe, I see people that want options in their shopping (online, same day, store, etc.),” Adams wrote. “The retailers that deliver multi-channel will survive and prosper.”

The Coalition of Norwalk Neighborhood Associations (CNNA) will host its members and any city residents at 7 p.m. Monday, Feb. 22, in the City Hall Community Room to hear a presentation by the SoNo Collection mall developer General Growth Properties.


George F. February 22, 2016 at 3:08 pm

At the expense of not being a naysayer or raining down on the mall cheer-leading parade, it would be prudent for the city to outline a living will/impact analysis for this development should things go badly or aka “SONO Collection” go defunct. Specifically, how would this wind down, who would be responsible for the shutdown costs, what would take its place? In the era of e-commerce this is not a sure thing and a potential high risk proposition for the city’s balance sheet.

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