Photo: Nordstrom
Nordstrom may be in a better position than some of its other department store peers, but the chain has openly admitted the challenges it faces, and some might surprise you.
In a recent interview with the Los Angeles Times, co-president Erik Nordstrom cited the need for the company to improve its customer experience and product offerings. For those familiar with Nordstrom’s nearly legendary reputation for service, this may seem odd, but Mr. Nordstrom insists improvements are necessary as the chain seeks to give its customers “a compelling reason” to visit its stores at a time when mall traffic has fallen off in many locations.
The chain has taken steps in recent years to make it easier and more enjoyable to shop. In May, it launched a rewards program to allow customers without a Nordstrom card to earn points. More recently, Nordstrom announced it had partnered with Tesla to allow the electric car company to open a boutique inside one of its stores in Los Angeles.
Mr. Nordstrom admitted that the chain has taken a hit as more apparel sales have moved online. While Nordstrom has made significant investments in its digital and omnichannel capabilities, he told the LA Times that the company was not fully prepared for the speed with which consumers are shifting their purchases online.
Nordstrom is receiving greater attention as it moves closer to its next quarterly earnings report. The chain is also in the midst of its annual anniversary sale, which began last week and runs through Aug. 8.
In addressing the product part of the equation, Nordstrom announced the addition of new clothing brands and accessories for the sales event, including Alexander Wang, Alex and Ani, Alice + Olivia, Allsaints, Burberry (kids), Cupcakes and Cashmere, Current/Elliott, Illesteva, Madewell, Mara Hoffman, Marc Jacobs, Peek, rag & bone and The Honest Company.
Yesterday, Nordstrom announced it was expanding distribution of J. Crew’s Madewell brand to 20 more stores this fall. The department store has an exclusive deal with Madewell, which can only be found in Nordstrom or under its own banner.
- Why have upscale retailer Nordstrom and other apparel giants lost their luster? – Los Angeles Times (tiered sub.)
- Nordstrom Anniversary Sale Starts Today! #NSALE – Nordstrom, Inc.
- Nordstrom Reports First Quarter 2016 Earnings – Nordstrom, Inc.
- Nordstrom Expands Madewell Partnership to 20 Additional Stores This Fall – Nordstrom, Inc.
- Nordstrom expands rewards to non-cardholders – RetailWire
- Will luxury shoppers buy electric cars at Nordstrom? – RetailWire