Digital sales are rising steadily Nordstromand shows a steady upward trend.
During the Second quarter results In a conference call on Tuesday (Aug. 27), CEO Erik Nordstrom said digital sales rose 6.2% and now accounted for 37% of total sales, marking the fifth consecutive quarter of improvements.
“As we have previously communicated, expanding the digital customer journey is an important part of our strategy to drive Nordstrom’s growth,” said Erik Nordstrom during the earnings call. “In April, we successfully launched our Marketplace and have since We have added over 15,000 items to our digital offering and nearly 100 new brands. While we are pleased with the initial response from our customers, Marketplace is not yet a major driver and we will continue to expand it in the coming months.”
Nordstrom’s Sales in the second quarter rose 3.4% to $3.78 billion, while comparable sales increased 1.9%. Nordstrom Rack increased sales 8.8% while comparable sales increased 4.1%. In the second quarter, Nordstrom opened five new Rack stores, bringing the year-to-date total to 11. Another 12 new Rack stores are scheduled to open before the holiday season.
“The Rack’s digital business is a differentiator in off-price retail, enabling our customers to shop when and how they want,” said Erik Nordstrom. “We have built and refined industry-leading digital capabilities at NordstromRack.com, which delivered strong results in the second quarter. An expanded merchandise offering from great brands at great prices, combined with a focus on warehouse pricing, were the driving forces behind the results.”
Erik Nordstrom cited improvements in search and discovery, balancing price points, especially online, and a focus on warehouse pricing as key elements for digital growth.
“It works for us because it’s part of our larger ecosystem,” he said. “We see more opportunities to engage more with consumers and capture a larger share of wallet.”
Nordstrom’s biggest event of the year, the Nordstrom Anniversary Saletook place from July 15 to August 5 and included new arrivals from the most sought-after brands in the women’s, men’s, Childrenbeauty And home on offer. Nordy Club loyalty card members had Early Access from July 11th.
“Our Anniversary Sale is a one-time event that rewards and engages our customers with brand new products. product from the best brands, reduced for a limited time”, Pete Nordstromsaid the retailer’s president during the call.
“The sale is very meaningful to our best customers and they look forward to the event every year. The stories we hear from our customers each year never cease to make us proud. We have heard of generations of shoppers who make the sale an annual family event and plan their summer activities around it.”
Pete Nordstrom noted 75% of the company symbol and members of the Ambassador Nordy Club took part in the sale.
“Anniversary sales were driven by new arrivals and fall fashion from the brands our customers care about most, including our Nordstrom private labels,” he added. “Beauty sales growth supported The anniversary success and the Active category, which includes footwear and apparel, continued to show strength throughout the event, recording double-digit growth.”
Nordstrom remains focused on expanding its flagship store in New York City. which is the store with the highest turnover since the beginning of the year. Particularly noteworthy is the opening of the first Icon Lodge, aimed at members of the highest Nordy Club and offering a premium experience with free food and drinks.
