Nordstrom Doubles Down on Bricks

The Wall Street Journal: “Many retailers, beset by online competition and shifting consumer tastes, are slashing costs and closing hundreds of stores. Nordstrom Inc. is doing the opposite … It is revamping some of its 122 department stores and spending more than $500 million to gain a toehold in Manhattan. It has snapped up e-commerce companies including flash-sale website HauteLook and subscription service Trunk Club. And it has launched new concepts, including a store in Los Angeles called Nordstrom Local that doesn’t stock any clothes. So far, those efforts have failed to pay off in rising profits.”

“Nordstrom says it is different from its peers. It has fewer locations than rivals, and most are in the nation’s top malls, which continue to draw shoppers … While other department stores are retrenching, Nordstrom has shown a willingness to take risks. It is jumping into the competitive New York City market with a men’s store opening in April followed by a women’s store next year … At a store in Irvine, Calif., Nordstrom recently completed a test of a showroom that carried samples of 19 brands such as Rag & Bone and Veronica Beard in every size and color; they could be tried on but had to be ordered online. For shoppers, it solved the problem of visiting a store only to find their size sold out.”

“Other changes meant to appeal to customers are smaller. In November, the company unlocked the fitting rooms in its department stores … Although theft has increased slightly since Nordstrom made the change, executives say, the retailer is sticking with the new policy. ‘Analysts don’t like it,’ Jamie Nordstrom said. ‘But I’m thinking about the next 50 years, not the next quarter’.”


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