albert Chan
Nordstrom Inc.
Sector: Department stores Countries of operation: Canada, the US Key product categories: Accessories, apparel, cosmetics and shoes for children, men, women and young adults Annual Metrics [caption id="attachment_151820" align="aligncenter" width="700"]
Fiscal year ends on January 30 in the following year** Includes Jeffrey Boutiques, Last Chance and Trunk Club stores from FY16–FY18 (eight stores total in fiscal 2016 and 11 stores total in fiscal 2017 and 2018), which were reclassified as part of full-price in fiscal 2019
*** TTM is calculated based on month ending April 30, 2022[/caption] Summary Nordstrom is a US-based fashion retailer of accessories, beauty products, clothing, footwear and home furnishings. It operates both full-price and off-price retail stores. Its full-price stores include Nordstrom US, Nordstrom Local, Nordstrom Canada, and Nordstrom.com. and Trunk Club. Its off-price stores include US Nordstrom Rack and Last Chance clearance stores, as well as Nordstromrack.com. As of January 29, 2022, the company operated 342 stores in the US and 13 stores in Canada. The company also sells its products through its website. The company employed approximately 60,000 employees in fiscal year 2021, increasing to approximately 72,000 for the holiday season. Company Analysis Coresight Research insight: Nordstrom’s strategy outlines growth for its top markets—its off-price business and its digital business. The company has been working on this strategic plan, and its off-price business has grown steadily as a proportion of total sales, from 33% in fiscal 2018 to 34% in fiscal 2020. The company is also investing in its off-price digital business, offering a wider range of product listings on its e-commerce site. Consumers are able to pick up online orders from Nordstrom Rack stores, with the company shifting to store-based fulfillment from Nordstrom Rack stores as of October 2020. This move may help Nordstrom Rack to become a leader in the off-price digital retailing space, as off-price e-commerce capability has been a notorious challenge for retailers due to SKU (stock-keeping unit) management. We see this as a positive strategic move for Nordstrom. One overall challenge that Nordstrom faces is that nearly 75% of its portfolio is fashion-focused—with 51% of its revenue comprising kid’s, men’s and women’s apparel sales and 24% of its revenue comprising footwear sales. Prior to the Covid-19 crisis, the company’s portfolio included businesswear and dressier apparel, for which demand has dropped in favor of casual apparel amid the crisis. In a pandemic-reactive world, we expect consumer spending in some apparel categories to not be as robust as pre-Covid-19 levels for at least the near term.
| Tailwinds | Headwinds |
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- Focus on the top 10 markets.
- Add pick-up capabilities at Nordstrom Local service hubs, in Nordstrom Rack stores and in Nordstrom stores.
- Nordstrom Rack comprises one-third of the Nordstrom business and is a strong source of new customer acquisition—approximately one-third of Nordstrom Rack customers become full-price Nordstrom customers within one year.
- Expand the Nordstrom Rack price points, particularly for lower price points in stores.
- Integrate the online business with the physical stores business, including integration of inventories between HauteLook.com, Nordstrom.com, Nordstromrack.com and Rack stores.
- Increase the linkages of the Nordstrom digital business to the physical business to offer virtual styling services.
Company Developments
| Date | Development |
| July 26, 2022 | Nordstrom announces plans to open two Nordstrom Rack stores in the spring of 2023. One store will be located in Bradley Fair, a mixed-use complex in Wichita, KS, and the other store will be located in The Terrace at Hamilton Place in Chattanooga, TN. |
| July 20, 2022 | Nordstrom announces the appointment of two new senior executive leaders: Deniz Anders was promoted to senior vice president and chief marketing officer, and Nina Barjesteh, a senior executive at DICK's Sporting Goods, will join the company as president, Nordstrom Product Group. |
| June 29, 2022 | Nordstrom announces its annual Anniversary Sale will begin July 15, 2002. Customers can shop new arrivals for women's, men's, children, beauty and home on sale for a limited time until prices go back up on August 1, 2022. The Anniversary Sale features more than 100 new brands. |
| June 1, 2022 | Nordstrom announces it is celebrating Pride month by giving back with corporate donations to support the LGBTQIA+ Community including The Hetrick-Martin Institute (HMI), Trans Lifeline, and Human Rights Campaign (HRC). |
| May 24, 2022 | Nordstrom announces that consumers can shop Allbirds sustainable men’s and women’s shoes in 14 stores beginning June 1, 2022. Later this year, Allbirds will expand their selection, which will be available to shop on Nordstrom.com, at Center Stage in New York City and in more Nordstrom stores. |
| May 23, 2022 | Nordstrom announces that customers can shop ASOS in 10 Nordstrom stores and on Nordstrom.com. This includes an immersive shopping experience named ASOS | Nordstrom at The Grove, designed specifically to engage 20-something customers. |
| May 12, 2022 | Nordstrom Local is opening a pop up in the Hamptons from May 27 through September 7 which will offer services including online order pickup, alterations, and returns. |
| April 29, 2022 | Nordstrom releases 2021 Impact Report which tracks the company’s progress toward the company’s 2025 Corporate Social Responsibility and Diversity, Inclusion and Belonging goals. |
| April 26, 2022 | Nordstrom announces plans to open a Nordstrom Rack store in the spring of 2023 in the North Hollywood neighborhood of Los Angeles, CA. |
| April 4, 2022 | Nordstrom announces the retirements of Scott Meden, chief marketing officer (CMO), and Geevy S.K. Thomas, president of Nordstrom Rack. Announces the appointments of Ken Worzel and Jamie Nordstrom to the newly created roles of chief customer officer and chief stores officer. |
| March 23, 2022 | Nordstrom announces Nordstrom Rack to open two locations in fall of 2022. The stores will be located in Phoenix, AZ and Riverside, CA. |
| March 15, 2022 | Nordstrom appoints Amie Theuner to Board of Directors. |
| February 2022 | In honor of Black History Month, Nordstrom launches an in-store marketplace with Black-Owned Brooklyn, a digital publication spotlighting Black-owned, Brooklyn-based businesses, as part of the Center Stage pop-up platform at its NYC flagship. |
| January 2022 | Nordstrom launches The Nordy Pod, a podcast hosted by Pete Nordstrom, President and Chief Brand Officer, The Nordy Pod explores topics that are relevant to brands and designers in today's fashion landscape and spotlights prominent industry voices. |
| January 2022 | Nordstrom announces plans to relocate its Nordstrom Rack store to a new location within The Summit in Birmingham, AL. The 27,000-square-foot store is scheduled to open in spring 2023. |
| January 2022 | Nordstrom partners with Brady, the newly released next-gen athletic apparel brand created by American football player, Tom Brady as the only physical retailer for the brand. The Brady collection will be available in four selected stores and online at Nordstrom.com. |
| January 2022 | Nordstrom names Rickie De Sole as Women's Designer Fashion & Editorial Director. This is a newly created role. |
| November 2021 | Nordstrom and Fanatics, a leading provider of licensed sports merchandise and global digital sports platform, announce a new long-term partnership through which Nordstrom.com customers will have access to shop thousands of high-quality licensed sports fan products available exclusively through Fanatics' assortment. Nordstrom will power the front-end digital customer experience, while orders will be fulfilled and shipped by Fanatics. |
| August 2021 | Nordstrom will provide 25,000 pairs of brand-new Nike sneakers to kids in need for its 11th annual giving campaign |
| July 2021 | Nordstrom announces Farrell Redwine as its new Chief Human Resources Officer. She will join the executive team and report to Nordstrom CEO Erik Nordstrom. |
| July 2021 | Nordstrom and ASOS announce that Nordstrom has acquired a minority interest in the Topshop, Topman, Miss Selfridge and HIIT brands. This investment will help drive the growth of these brands globally, setting the stage for Nordstrom and ASOS to sit alongside a new wider strategic partnership. This partnership will involve unprecedented collaboration and alignment, redefining the traditional retail/wholesale model. |
| June 2021 | Nordstrom announces a partnership with Henna & Hijabs (H&H) to introduce an exclusive collection of hijabs created for Muslim woman. Over the last six months, Nordstrom has been partnering with Hilal Ibrahim, the founder and CEO of Henna & Hijabs (H&H), to create a collection of hijabs in a versatile mix of prints, vibrant colors and fabrics. |
| May 2021 | Nordstrom announces that BP. is introducing an ongoing collaboration with WILDFANG – a brand that challenges stereotypes and gender norms. The BP. and WILDFANG teams have been working over the last 18 months to develop not only a product collaboration, but an immersive partnership that includes gender knowledge trainings for employees, product research, social responsibility initiatives and marketing research. This work will culminate with a series of BP. + WILDFANG collections beginning in May 2021, each complimented with employee trainings. |
| May 2021 | Nordstrom announces it will be providing a grant to the Trans Lifeline x FOLX Hormone Replacement Therapy (HRT) Care Fund, to support transgender, nonbinary and gender nonconforming individuals. For anyone struggling to access hormone care, this fund will underwrite their choice of Hormone Replacement Therapy (HRT) care through FOLX, with 75% of funds reserved for Black and Indigenous people, and people of color (BIPOC). |
| March 2021 | Nordstrom partners with Tonal, a smart home gym and personal training system. Beginning in March, the experience will launch in the Women's Active department in 40 Nordstrom locations across 20 states in the U.S. Customers can experience a full Tonal demo and try a workout through a 50 square foot concept. |
| February 2021 | Nordstrom NYC hosts a pop-up in celebration of Black History Month highlighting nine influential Black entrepreneurs. |
| February 2021 | Nordstrom hosts virtual Investor Day focusing outlining long term growth strategy focusing on three areas of greatest opportunity: (1) winning in Nordstrom’s most important markets; (2) Broadening the reach of Nordstrom Rack; (3) Increasing Nordstrom Digital Velocity. The company expects fiscal year 2021 revenue, including retail sales and credit card revenues, is expected to grow more than 25 percent, with digital representing approximately 50 percent of total sales. |
| January 2021 | Nordstrom announces that Alix Box has joined the company as Senior Vice President, Regional Manager for Canada. |
| January 2021 | Nordstrom celebrates Black History Month: reaffirms commitment to advance diversity, inclusion, and belonging. Nordstrom expanded on the goals it set in August 2020: Nordstrom announces the continued expansion of its Inclusive Beauty category with the launch of 12 partnerships with 12 new Black founded brands this month; Nordstrom at Home will launch GOODEE brand this month, a Black founded brand by designers and creatives Byron and Dexter Peart; New Concepts @Nordstrom will launch Concept 012: Black Space a national retail platform for designers, creatives and thought leaders across varied perspectives and experiences representing Black culture. |
| December 2020 | Nordstrom offers expedited shipping and same-day delivery in New York City. New York City customers can select same day shipping when checking out. Orders placed by 4pm will be delivered by 8pm for $20. |
| December 2020 | Alexis DePree, executive vice president and chief supply chain officer, becomes a member of the executive team effective on Jan. 3, 2021. |
| October 2020 | Nordstrom announces that it is adding two Nordstrom Local Service hubs in California, in Newport Beach, California on November 6, 2020 and in Manhattan Beach in the coming months. |
| October 2020 | Nordstrom introduces an order-pickup service at US Nordstrom Rack stores for HauteLook.com, Nordstrom.com and NordstromRack.com orders. The retailer is also enabling all Nordstrom Rack stores to fulfill online orders for customers. |
| October 2020 | Nordstrom announces that its private-label brand, Treasure & Bond, will partner with nonprofit organizations in five regions to support different initiatives, including housing, mental health services and job training for young people experiencing homelessness. The brand commits to gives back 2.5% of its sales revenue to nonprofit organizations that work to empower youth. |
| October 2020 | Nordstrom launches BEAUTYCYCLE, a recycling program for all brands of hard-to-recycle beauty packaging, in partnership with recycling partner, TerraCycle. |
| September 2020 | Nordstrom announces that it will stop selling products made using animal fur and exotic animal skin by the end of 2021, in partnership with the Humane Society. |
| September 2020 | Nordstrom partners with When We All Vote and National Urban League to empower employees and customers to vote |
| August 2020 | Nordstrom’s Anniversary Sale event begins on August 19. Consumers are able to shop with early access from August 13. |
| May 2020 | Nordstrom launches “Concept 010: ACTIVATE!”, a fitness and wellness-focused collection with seven lifestyle, performance and activewear brands. It marks the tenth project launched by the New Concepts division. |
| May 2020 | Nordstrom announces that it will permanently close three Jeffrey stores and 16 full-price Nordstrom stores (including its only store in Puerto Rico). |
| April 2020 | Nordstrom commits to protect meeting its sustainable goals and initiatives by 2025. These include: (1) Set a science-based target to reduce greenhouse gas emissions; (2) Reduce single-use plastic by 50%; (3) Use sustainably sourced raw materials in 50% of Nordstrom Made products made of polyester, cotton and cellulosic fibers; (4) Extend the life of 250 tons of clothing; (5) Ensure 15% of all product is considered sustainable; (6) Donate $1 million to support textile recycling innovation. |
| April 2020 | Nordstrom announces the amendment of its $800 million revolving line of credit and the closing of its 8.75% secured debt offering of $600 million to provide additional liquidity and flexibility in response to uncertainty related to Covid-19. |
| March 2020 | Nordstrom closes its physical stores due to Covid-19, effective March 17. |
| January 2020 | Nordstrom introduces See You Tomorrow, a resale shop curated by Olivia Kim, Vice President of Creative Products at Nordstrom. The shop will be available online and in the New York City flagship store as of January 31. |
| October 2019 | Nordstrom opens a flagship store for women and children in New York City, across from the men’s Nordstrom store |
| October 2019 | Nordstrom partners with Good+Foundation to help New York City families in need, pledging a donation goal of $5 million by the end of 2020 to support various community organizations. |
| October 2019 | Nordstrom opens a full-price store in Norwalk, Connecticut—its second store in the state. |
| September 2019 | Nordstrom opens a Nordstrom Rack store in Tacoma, Washington. |
| September 2019 | The company announces the promotion of Ken Worzel to Chief Operating Officer, a newly created role. |
| September 2019 | Nordstrom opens a Nordstrom Rack store in British Columbia, its seventh Nordstrom Rack store location in Canada. |
| September 2019 | Nordstrom opens two Nordstrom Local Service hubs in New York City—one on the Upper East Side and the second in the West Village. |
| August 2019 | Nordstrom joins the G7 Fashion Pact, a coalition of 32 global luxury retailers convened by French President Emmanuel Macron at the annual G7 Summit in Biarritz, France to combat climate change. At this time, Nordstrom also launches a “sustainable style” shopping category to offer customers responsibly made products. |
| August 2019 | The company names Teri Bariquit as Chief Merchandising Officer, a newly created role. |
| July 2019 | The company names Ann Munson Steines as Executive Vice President, General Counsel and Corporate Secretary. |
| January 2019 | Nordstrom announces plans to close its full-line stores in Norfolk, Virginia and in Wellington, Florida. |
| January 2019 | Nordstrom reports holiday sales, including a comparable sales increase of 1.3 percent for the nine weeks ended January 5, 2019 (compared with the nine weeks ended January 6, 2018). In its full-price business, comparable sales increased by 0.3%, compared to the third-quarter year-to-date increase of 1.9 percent, reflecting softer in-store traffic. In its off-price business, comparable sales increased by 3.9%. |
| January 2019 | Nordstrom announces that former President of the department store chain Blake Nordstrom passed away on January 2, 2019. |
| November 2018 | Nordstrom reopens its Mall of San Juan store in Puerto Rico. The store had been closed due to damage from hurricane Maria. |
| October 2018 | Nordstrom announces plans to close its store at Providence Place in Providence, Rhode Island by January 4, 2019. |
| September 2018 | Nordstrom announces two Nordstrom Local openings—in Brentwood, California on September 28 and downtown Los Angeles, California on October 21. |
| July 2018 | Nordstrom hosts an investor day in Los Angeles, California. |
| May 2018 | The company names Ken Worzel as Chief Digital Officer |
| May 2018 | Nordstrom expands its range of items available in extended sizing to 30 stores, covering 100 brands |
| April 2018 | Nordstrom opens its first store in New York City—which is also its first stand-alone men's store. |
- Erik Nordstrom—CEO, Principal Executive Officer and Director
- Peter Nordstrom—President, Director and Chief Brand Officer
- Anne Bramman—Chief Financial Officer
- Edmond Mesrobian—Chief Technology Officer
- Kenneth J. Worzel—Chief Digital Officer
- Trina Schurman—Director of Investor Relations
Source: Company reports