Mexican luxury retail group Liverpool has bought a passive 9.9% stake in US high-end retail chain Nordstrom for geographical diversification.
Stocks of the Seattle firm cost 5.9 billion pesos ($293.8 million).
“This operation represents an attractive opportunity to diversify assets geographically,” Liverpool said.
Liverpool also disclosed the purchase in a separate filing with the Securities and Exchange Commission, indicating that it held a 9.90% stake as of September 8.
The grandson of Nordstrom founder Bruce Nordstrom owned 15.86% of the company’s shares as of December last year and was the largest shareholder, followed by his sister Ann Gittinger with 9.68%.
Nordstrom’s share price has fallen nearly 19% since the start of the year as rising gas and groceries prices forced US shoppers to cut spending on clothing and other essentials.
The company lowered its full-year guidance in August along with US retailer Macy’s due to weak demand, leaving them with excess inventory.
At the same time, Liverpool shares are up 10% since the start of 2022.
The Mexican company enjoyed double-digit revenue growth across its lines of business in the second quarter as it managed inventory wisely, matched products better, and had higher product prices.
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