Dive Brief:
- Nordstrom wants to elevate its digital experience in 2024 as part of a push to drive growth, CEO Erik Nordstrom said during a Q4 2023 earnings call last week. The retailer will emphasize greater personalization and better connection between in-store and digital shopping.
- Improved personalization will help shoppers navigate the company’s expanded product assortment once it launches a digital marketplace in April, according to Erik Nordstrom. The marketplace will feature new items sold through Nordstrom’s brand partners.
- The retailer will also work to shorten delivery times for an improved last-mile experience, Erik Nordstrom said. This effort will coincide with 22 Nordstrom Rack store openings this year that will expand pickup options as well as access to services like alterations.
Dive Insight:
Nordstrom’s 2023 investments set the foundations for it to continue to pursue digital personalization and convenience as sales drivers. With its data and technology advancements last quarter focused on the off-price Nordstrom Rack, the company is now looking to improve its premium banner.
Nordstrom is seeking to amplify brands that will be most relevant to browsing customers through improved personalization. The new experience “makes it easy for our customers to navigate our growing assortment” as the company adds more emerging brands to its portfolio, Erik Nordstrom said.
The company is expanding the rollout of its RFID technology, which uses electronic tags to help workers locate specific items in warehouses, to improve the delivery experience. This has already led to quicker delivery and fewer cancellations in Q3 2023.
Nordstrom Rack’s upcoming store openings will play a role in creating an overall better experience across all of the company’s brands, according to Erik Nordstrom. He noted that many customers enjoy shopping across brands and taking advantage of options like handling mainline Nordstrom pickups or returns at Nordstrom Rack stores.
“Expanding our network of stores brings our omnichannel services closer to the customer, giving them more reasons and opportunities to engage with us,” Erik Nordstrom said during the call.
