Nordstrom sees sales accelerate despite struggling department store climate

While many other department store chains are on the struggle bus with
sales, Nordstrom is in the money. The company’s e-commerce and even store
sales gains are very promising.

Business of Fashion reported that same-store sales rose 4 percent in the
latest quarter, surpassing analyst expectations and also resulting in a 14
percent rise in shares. Unfortunately, for some of their fellow department
stores, everything isn’t coming up roses. Macy’s Inc. raised their earnings
and revenue guidance for the year, but a spike in spending to win back
customers caused shares to decline 16 percent. J.C. Penney, which is going
through a summer of discontent, saw a 27 percent decline in shares due to
less than stellar results.

E-commerce is without question the future, as Nordstrom has proven with
their 23 percent increase in e-commerce in the midst of a struggling retail
environment. Nordstrom has also been ramping up sales at Nordstrom Rack,
their off-price chain, in order to avoid heavy discounting at their main
line stores.

Nordstrom has also recently opened a men’s store in New York, and has
experimented with an inventory free store. The New York men’s store is
premiere in customer service, as customers can order online and do pick-up
24 hours a day.

Earlier this year, Nordstrom was still in talks to potentially go private,
but has since ended those talks with the Nordstrom family. With their
promising shares, they were smart to stay public. The company’s new
business model is a smart one to follow for department stores looking to
stay in the black.

photo: via Press.Nordstrom.com