Nordstrom, Inc. executives know they have to make changes to bring customers back and return to the profitability of 2019, before the COVID-19 pandemic transformed the way people shop. During its third-quarter earnings call on Tuesday (Nov. 23), the retailer said it’s still trying to do better with that.
“We have long benefited from a commitment to customer service, new and compelling merchandise, innovative brand partnerships and interconnected digital and physical assets,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc, in the company announcement. However, it’s necessary to move faster to capitalize on these strengths and profitably grow market share.
“We’re taking action to improve performance at Nordstrom Rack, including optimizing inventory levels, better balancing price points and increasing brand awareness,” he said. “Work is also underway to improve merchandise margin across the company and ensure that we have the visibility and flexibility we need to serve our customers seamlessly, despite global supply chain challenges.”
Nordstrom was buoyed by “strong digital growth, the integrated capabilities enabled by our market strategy and increased net sales in our Nordstrom banner stores, but we are focused on accelerating our transformation and improving results,” said the CEO.
Nordstrom continues to enhance its partnerships, including recent team-ups with Fanatics and ASOS.
“Taking lessons learned from this year’s anniversary sale, the team has combined the art of merchandising with data-driven insights to put the right assortment in the right place at the right time,” said Pete Nordstrom, president and chief brand officer of Nordstrom, Inc., in the company announcement. “For the holiday season, we are excited about our plans to use our integrated network of stores and digital platforms to showcase holiday dressing, decor and gift offerings, and provide festive experiences and convenient services that make shopping easy and enjoyable for our customers.”
Nordstrom’s net sales increased 18% in the third quarter of 2021 compared to the same time a year earlier. Digital sales dropped 12% in Q3 compared with the same period in fiscal 2020 and was up 20% compared to fiscal 2019.
Related: Nordstrom Adds Cuvée Beauty Haircare Products
In October, Nordstrom added luxury haircare brand Cuvée Beauty through a retail distribution deal that will bring its “low-maintenance” products into all Nordstrom stores across the U.S. and to the high-end fashion retailer’s website.
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