What’s Next for Nordstrom
This week, everyone will be talking about Nordstrom’s plans for 2021, the final rounds of bidding for Topshop and other Arcadia brands, plus a new documentary about the artificial world of influencers. Get your BoF Professional Cheat Sheet.
- Nordstrom holds an event for investors and analysts on February 4, often an opportunity for companies to reveal major new plans
- Nordstrom’s sales have slowly recovered from pandemic lows; online sales made up 54 percent of holiday sales, up from 34 percent in the same period in 2019
- The department store has a goal to generate $500 million in sales from Black and Latino brands over the next five years
A retailer’s annual investor day messaging can range from “stay the course” to “we’re selling the company for parts,” and everything in between. Nordstrom’s event this week is likely to be on the more exciting end of the spectrum. The Seattle-based department store chain has plenty of problems to confront, from a 22 percent drop in year-on-year sales during the key holiday period to the future of its 100 stores (plus 248 off-price Nordstrom Rack locations) as the pandemic drags on. At the same time, there’s reason to believe executives when they inevitably say the worst is over. While still down, sales are improving, and unlike many apparel retailers, Nordstrom is once again profitable.
Expect to hear about new efforts to bolster e-commerce, where sales are strong. Perhaps the company will also provide an update on Nordstrom Local, a pre-pandemic initiative to open inventory-free locations where customers can pick up and return online orders, consult with stylists and more. It’s not clear how this strategy has fared over the last year, but the concept seems ripe for expansion in a post-pandemic world where e-commerce is ascendant and many consumers remain wary of lingering in stores.
The Bottom Line: Nordstrom is also implementing the first stages of a long-term plan to improve its record on inclusion, including hiring more diverse managers and stocking more Black-owned brands. The company told BoF last week it is close to signing the 15 Percent Pledge, which would require major changes to its approach to buying, inventory and marketing. Hopefully more details about how it plans to reach these goals will be forthcoming this week.