Two executives who were overseeing the Rack division of Seattle-based luxury retailer Nordstrom announced their retirements in a Monday (April 4) press release. In their stead, the company tapped a pair of veteran employees to take on the task of turning the flagging unit around.
Nordstrom chief marketing officer Scott Meden, who worked for Nordstrom for 37 years, and Rack president Geevy S.K. Thomas, who worked 39 years with the department store chain, are both stepping down from their respective roles.
Ken Worzel, Nordstrom’s chief operating officer, and Jamie Nordstrom, president of Nordstrom stores, have been named as chief customer officer and chief stores officer, respectively, and take ownership of Rack’s turnaround.
The company said in the press release that the changes will “better align operational oversight with the company’s Closer to You strategy.”
“This new leadership structure is reflective of a natural evolution that comes directly from our focus to serve customers better across all channels and banners,” said Nordstrom Chief Executive Officer Erik Nordstrom, in a statement.
Nordstrom Rack has struggled lately to reach its previous levels of success, in part because the company has been dealing with supply chain disruptions related to the COVID-19 pandemic. The company said Rack sales were down 5% compared to 2019 levels in the fourth quarter of fiscal 2021. In Q3 of fiscal 2021, Rack’s sales dropped 8% from two years ago.
Related: Rack is Back: Nordstrom Gets Huge Bounce From Gains at Off-Price Unit and Digital
Nordstrom, which owns 110 physical stores, said continued growth in its digital business and mobile app users, as well as improved supply chain and COVID-19 environments, helped lift its trailing results and give it confidence to issue guidance that was ahead of analyst expectations.
A top-to-bottom analysis of the business allowed Nordstrom to increase inventory by nearly 20% and keep shelves stocked in its discount stores, while also sourcing and selling the latest full-priced items at the namesake locations, the CEO said.
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