Important industry customer Nordstrom provided a newsy update on its business Tuesday afternoon that included store closure plans and a corporate restructuring with job cuts.
Nordstrom also provided details about how the company plans to make shopping in stores safe during the COVID-19 crisis, including keeping tried on or returned merchandise off the sales floor for a period of time.
Store Closures
The big news is that Nordstrom has decided to permanently close 16 of its 116 full price Nordstrom stores. It did not release a store closure list.
It is also restructuring regions, support roles and its corporate organization to “increase speed and flexibility” which will save $150 million annually. That on top of $200 million to $250 million in previously announced cuts, means the company is reducing non-occupancy overhead expenses by 20%.
Since stores have been closed, Nordstrom had been generating solid online sales and traffic, helped by promotions and increased marketing in a quest to clear excess inventory.
The company has also added capabilities fleetwide to fulfill online orders through stores. More than half of Nordstrom.com orders are currently fulfilled from full-line stores, and 25 % of Nordstromrack.com and HauteLook.com orders are now fulfilled by Nordstrom Rack stores.
Many retailers have been fulfilling online orders from stores as much as possible during the crisis as a way to help clear store product and leverage inventory.
Stores are starting to reopen based on local guidelines, and as they open, Nordstrom is installing the following safety practices:
- Conducting health screenings for employees
- Keeping tried on or returned merchandise off the salesfloor for a period of time
- Providing face coverings for employees and customers
- Creating space for social distancing of six feet or more, including limiting the number of customers and employees in the store
- Increasing cleaning and sanitization
- Modifying the fitting room experience
- Continuing to offer contactless curbside services at full-price stores
- Changing hours of operation
- Pausing or adapting high-touch services and customer events.
The company also announced it is moving its popular anniversary sale to August from July.
Nordstrom currently has 116 full-line stores, 247 Nordstrom Rack stores and five Nordstrom Local service hubs.
