Nordstrom's Shift to Private Ownership

The acquisition of Nordstrom by El Puerto de Liverpool for over $24 per share is indicative of the struggles faced by public companies today. Despite a 31% increase in stock price in 2024, Nordstrom has not benefitted significantly from being publicly traded, leading the Nordstrom family to choose privatization. By going private, the company aims to streamline operations and reduce the costs associated with public ownership, such as reporting and compliance expenses. The executives recognize that the brand can operate effectively as a cash cow without the pressure of public market expectations.