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.