MEXICO CITY (Reuters) – High-end Mexican supermarket chain Liverpool has taken a negative 9.9% stake in US retailer Nordstrom (NYSE:NYSE), using what it said was surplus cash as a bet on geographic diversification.
Liverpool said in a statement on Thursday that it had bought 5.9 billion pesos ($293.8 million) of shares in the Seattle-based company.
“This operation presents an attractive opportunity to diversify assets geographically,” Liverpool said.
Liverpool also reported the investment in a separate filing to the Securities and Exchange Commission, indicating that it had a 9.90% stake as of September 8.
According to Refitiv data, as of last December, the grandson of Nordstrom founder Bruce Nordstrom owned 15.86% of the company, which made him its largest shareholder, followed by his sister Anne Gittinger with a 9.68% stake.
Nordstrom has seen a loss of nearly 19% in the value of its stock since the beginning of this year, as higher gas and grocery prices prompted customers in the United States to cut spending on apparel and discretionary goods.
The retailer had lowered its annual forecast in August, along with US retailer Macy’s (NYSE:) on the back of lower demand, leaving them with surplus inventory.
Meanwhile, Liverpool has seen its shares rise 10% since the start of 2022.
The Mexican company reported double-digit revenue growth across its business lines in the second quarter, which it attributed to good inventory management, a better product mix, and higher sales prices.
(1 dollar = 20.0800 Mexican pesos)