We chose the article “Nordstrom Is the First Retailer That Actually Understands What We Want,” by Serdari, because it describes a new development at the company, while also elaborating on how the change could possibly affect Nordstrom. The article was written to talk of the company’s decision to open “Nordstrom Local,” which has the interesting quirk of being the first store in the company that will not sell clothes. Instead, Nordstrom Local will focus on providing “an in-store bar with wine, beer, coffee, and juices; eight fitting rooms; alterations; convenient merchandise pick-ups and returns; manicures; and expert image consulting advice from its knowledgeable personal stylists.” With the store not having to worry about the stock and sale …show more content…
are Deloitte & Touche LLP. Deloitte issued an unmodified auditing opinion. The significance of this opinion is that Nordstrom, Inc. made no mistakes, material or immaterial, on their financial statements. The auditors assume responsibilities when conducting the audit. These responsibilities ensure that the financial statements/accounts are reasonably without flaw, reviewing the statements, making sure the accounting principles used are in accordance with GAAP, and evaluating what the financial statements say about the company’s success or failures in that year. Gross profit increased from $4,934 (2015) to $5,064 (2016) % of net sales is relatively flat due to increased occupancy costs such as rent 35% (2015) v. 34.9% (2016) Increase in gross profit is offset by an increase in cost of sales in related buying and occupancy costs Credit card revenues, net decreased from $342 (2015) to $259 (2016) Finance charge revenue decreased from $173 (2015) to $6 (2016) Finance charges: interest earned on unpaid balances Nearly quadrupled credit program revenues from 2015 to 2016 ($64 to $246) Huge increase in net credit program revenues from 2015 to 2016 ($64 to $246) is offset by a vast decrease in finance charge