Dive Brief:

• Nordstrom is opening new stores and investing in personalization to offer a better omnichannel experience for Nordstrom and Nordstrom Rack customers, executives said on a Nov. 21 Q3 earnings call.
• The retailer has also worked to drive down delivery times, which fell in each of the past seven quarters, according to CEO Erik Nordstrom. The average time between purchase and delivery decreased 20% during this period.
• “We've made meaningful improvements to the customer experience that will help our customers shop seamlessly across both of our banners, both in stores and online,” said Pete Nordstrom, president and chief brand officer.

Dive Insight:

Nordstrom is doubling down on investments in personalization and last-mile delivery to drive convenience for customers no matter how or where they choose to shop with the company. 

Improvements to Nordstrom Rack were a priority in Q3, according to Erik Nordstrom. By revamping its omnichannel experience, Nordstrom Rack was able to differentiate itself from other off-price retailers and achieve profitability in its digital channel.

“We see an opportunity to leverage that capability to engage with customers more and more,” said Erik Nordstrom. “And so we have a path forward with a lot of omnichannel capabilities that we feel good about driving growth there.”

Opening new Nordstrom Rack locations is another part of growing engagement, according to Eric Nordstrom, who called its stores “our largest source of new customer acquisition.” The company has opened 19 off-price locations this year.

Nordstrom has invested in improving its data and analytics technology, allowing it to offer more relevant and personalized content across its website and app, according to Pete Nordstrom. 

Investments in RFID technology have led to improved stock accuracy and operational efficiencies that contributed to speedier delivery windows during the quarter, according to the retailer. “All of this translates into a better experience for our customers and cost savings for us through faster delivery, lower cancellation rates and increased accuracy of inventory,” Erik Nordstrom said.

Nordstrom has built free two-day shipping into its loyalty program and, for the duration of the holiday season, expanded it to all customers in its top markets. Pete Nordstrom expects fast, reliable delivery to turn first-time buyers into loyal customers.