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Flash Reports 4 minutes

Nordstrom Sets the Stage for Its First Women’s Store in NYC This Week

Coresight Research

Key Points

On October 22, 2019, Nordstrom held a special call regarding the launch of a women’s store in New York City, slated to open October 24.

  • The new Nordstrom store will include three core services: online pickup and returns, alterations and styling.
  • Nordstrom expects synergies with the men’s Nordstrom store located across the street: Some 48% of all business in the men’s department is done with a woman purchasing for a man.
  • And, Nordstrom has found that when customers engage in services and across multiple touchpoints, total spend goes up.


Why a Physical Store in NYC?

Pete Nordstrom, the company’s Copresident and Director, said that the company needed to be connected to the community and to the neighborhood. Specifically, Nordstrom hopes to connect with New York City’s working community and to tap into the city’s massive tourist trade.

Pete Nordstrom said New York is a compelling opportunity for the company, adding that New York is already the company’s largest online market. The company expects this will increase as Nordstrom usually sees a 20-25% lift in online traffic when it enters a market with a physical presence.

Synergies with the Men’s Store

The company expects synergies for both the men’s and women’s Nordstrom stores. The Nordstrom men’s store is across the street from the new women’s Nordstrom store. Nordstrom said some 48% of all business in the men’s department is from women purchasing for men. Additionally, in the men’s Nordstrom’s first 18 months, about 25% of purchases are made with a woman present.

When Nordstrom Customers Engage in Services and Across Multiple Touchpoints, Spending Goes Up

Management said it prides itself on service, and discovered that when customers use services such as alterations, buy online, pick up in store (BOPIS), or engaging the services of a stylist, customer spend more, are more highly engaged with the brand and show greater retention.

Kenneth J. Worzel, Chief Operating Officer, said the Nordstrom team also found that customers who shop across multiple channels spend more. The company has been testing new concepts in the Los Angeles market and gleaned a number of insights. It has 16 full-size stores and three Nordstrom locals, and found that when customers buy online and pickup in any store or have the item delivered to home in the next day, order pickup rates are double what they are in other markets. Nordstrom Locals receive returns eight days faster than average, and at a macro level, full-price sales growth in Los Angeles is outpacing other metro areas.

Nordstrom Including Core Services in NYC

The company is bringing to New York the three core services it found customers respond to on the other coast:

1)  Online pick up and returns.

2)  Services such as alterations.

3)  Styling services for customers who want them.

The company will offer Nordstrom cardholders free next-day delivery to home or office in the local market. Management said it is encouraged by the learnings from the Los Angeles market, and has multiple touchpoints in New York City now, with two Nordstrom Local service hubs for customers and two Nordstrom Racks in Manhattan.

Nordstrom is Personalizing the NYC Experience with “Wow” Moments

Nordstrom is working with local leasing management companies and inviting local NYC residents to try the new Nordstrom Women’s store by providing sample products. For example, one Coresight Research team member received slippers in a silver bag with an invitation to visit the new store and to monogram the slippers for free.

Source: Coresight Research


More than Half of Nordstrom’s In-Store Sales begin Online

Erik Nordstrom, Copresident and Principal Executive, spoke about the power of the mobile phone. More than half of Nordstrom’s store sales begin online, and more than one-third of online sales begin with a store visit.

#1 Retailer for Customers to Make their First Designer Purchase

Nordstrom claimed it is the “number one” retailer from which customers make their first designer purchase. Management credits this to the breadth of assortment and the welcoming environment. Nordstrom went on to say it believes its environment is unique, comprising full price, off-price and a robust digital business that accounts for 30% of sales.

Off-Price is a Customer Acquisition Vehicle

About one-third of new Nordstrom off-price customers migrate to full-price every year. Nordstrom reported its digital and physical channels are synergistic: When customers engage in more than one channel, they spend more overall.

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