Nordstrom Poised For Growth With Off-Price Division And Multi-Channel Focus
By Jennifer Lynn, contributing writer
Luxury retailer grows its Tri-State area presence, thanking technology for improving the customer experience
Nordstrom announced on Tuesday, Dec 10 its plans to expand its presence in New Jersey by opening a 32,155-square-foot Nordstrom Rack store at Livingston Center in Livingston, NJ. The new store, scheduled to open in autumn 2014, will be the third of its kind in the Garden State and feature the same multi-channel offerings as traditional Nordstrom stores.
Multi-channel offerings, which have sparked tremendous growth, have been a top priority for the luxury retailer. Included in its multi-channel offerings, enhancing the customer is experience, is mobile POS, which Nordstrom embraced last year. Just like its traditional counterpart, Nordstrom Rack will use mobile POS as part of the company’s aggressive growth strategy. Furthering the customer experience is Nordstrom’s mobile app — able to be used both in-store and as a means of e-commerce — which Nordstrom has developed to drive user engagement.
Nordstrom’s earnings figures directly reflect its investments in technology and the customer experience. Multi-channel offerings have resulted in nearly 30 percent online sales growth over the last year. Online sales have tripled since 2011, when Nordstrom launched its mobile app, acquiring more than 15 million members along the way. The off-price segment of Nordstrom is also generating growth for the company. The Rack saw net sales climb to $95 million, up 16 percent against the same time period of 2012. Same-store sales at the off-price segment of Nordstrom rose nearly 4 percent on top of 2012’s impressive same-store sales increase of more than 8 percent.
The heavily-populated tri-state area (NJ, NY, and PA) presents an excellent opportunity for Nordstrom to open new stores and further its initiatives. “It's important that we continue to find additional ways to give our tri-state area customers access to great brands at great prices and we hope this new Rack will help us do just that,” says Geevy Thomas, president of Nordstrom Rack.
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